MFC big trouble ahead?

Hamilton

MFC june 2011

This was our canary-in-the-mine stock and we got out a while ago around $19 or so. So far the little bird has not regained its composure and things could get ugly quite rapidly All waves since the lows of March ‘09 appear to be 3-wave affaires indicative of a triangle (potentially at least). If that is the case, the stock will be pulverized. The triangle measures conservatively $15 at the mouth. Now suppose the e-wave of the triangle were to start at around $16/$17 , then the target would be $2 at best! Before that does happen arrangements will be made for a merger or take-over. After all , the address on Bloor street with its immaculately  kept lawn is probable a prize asset for any predator.

YLO Yellow Pages.

Hamilton

Last time I looked at this stock, back in ‘09 it was still an income fund earning about 15%. The target was $7.50, it got to $7. I have not really looked at it seriously since. Here it is;

ylo june 2011

Clearly this one is in trouble. Frankly you should have been stopped out at about $5 which represents the bottom of the consolidation range. We may get a rebound of a dollar or a little more which would present a good exit point if you still own it. The younger generation simple does not use the Yellow Pages anymore and even if this is supposedly Canada’s largest internet company, it simple is not changing the business model fast enough.

RIM update

Hamilton

rim june 2011 rim june 2011 s15

RIM as per my last blog on June 2 ,2011, could go as low as $25. Now that we are getting a little closer it is possible to refine the target to something in the order of $31 or so. As popular as this stock once was, so unpopular it is now. Every analyst is crawling over the next guy to come up with even lower targets. Each leg in this structure should have an intermission somewhere in the middle. That has happened perhaps,but it is hardly discernable with the naked eye which explains why it seems to have gone straight down.

The good news is, that if we hit the target (and we can turn anytime now at these levels!!) this stock should go straight up.  $45 is the very minimum, $70 is very reasonable and, if this is the pattern I think it is $90. (see June 2 blog).