Why should you buy COMI?

We are focusing on COMI because it’s one of the worst performer among our global coverage of 1000 assets. Despite being the worst performer the stocks technical structure does not look negative. It’s still above key Fibonacci supports, has RSI momentum positive and looks like an ending corrective countertrend that should find support and reverse soon.

This positive case on COMI suggest many things. One that any negativity on the local market maybe of an intermediate multi week degree and not more, because a secular bear market can break down all accumulating positive looking price structures. We also don’t expect a secular fall in a stock that is one among the worst performers.

Even fundamentally we are talking about a profit making enterprise. The PE multiple near 10 and Price to Book is below 2. This suggests that we have a real value stock. Rieki performance cycle view is also positive. The only problem seems the stocks small capitalization (near 60 Million dollars).

We also compared the stock to BETXT. At this stage BETXT has already outperformed COMI by 35% since Jun 2010. We are expecting a reversal soon on both Rieki pair performance cycle and on the relative performance (black line Fig.3).

Enjoy the latest Alpha Mid Economic

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