Buy this fast-growing Money Manager before it rallies 32%
I banked returns of 100%, 225% and 585% on this Money Manager before and it's time to do it again.
You see, I first bought a boat load of this company's shares for my clients when it IPO'd in 2014 at R3.05, followed by purchases all the way up to a little over R9.00. I started selling as it rallied above R16 and made them phenomenal returns in a very short period. We are still holding a small percentage of the shares today.
When I bought the shares, I vowed not to sell them as they would be the ten bagger I was looking for, but sometimes the price runs too fast, too hard. You need to take some profits off the table and this time it worked out well. As they say, “you don't go broke banking profits”.
A second bite at the cherry for a potential 32% gain
The triple digit gains won’t happen as quickly as they did the first time around but I expect a nice rally to around R9.90 in the next 6 to 12 months. That’s 32% if you buy below R7.50.
The rally I expect we will see this move due to the fundamentals being incredibly attractive at the current price. My colleague Guy Algeo highlighted this as a good buy around R7 with a12 month view in his weekly Buy and Sell article. Based on its trading statement released on 17 March, it’s on a PE of around 11.5%.
The full set of results are not out yet as I write this, but they will be the catalyst for the rally higher, they should have been out on 22 March.
As mentioned in earlier articles, I like to have the fundamentals confirm a technical set up and that’s what these results will do. The technicals look very attractive as the price has consolidated with support forming around the R6.75 level. I have circled the areas in red.
And there is an inverse head and shoulders forming that will get short term traders buying the share and sending it higher as well.
Buy the bottom and stand to make triple digit gains
The below chart is a magnified view of the right-hand side of the above chart showing the head and shoulder formation that is playing out.
As you can see, the first area of resistance is R8.50 followed by R9.90, which is where short term traders can take some profits off the table.
Longer term traders can look at the R12 area to lock in some gains and ultimately target R15.00 and higher.
Buy Anchor below R7.50 to lock in the best potential to bank a 32% gain in the next 6 to 12 months and potentially triple digit gains in the next two or so years.
There are no derivatives on Anchor at the moment, so buy the physical.