What’s Happening to the Share Price of AP Eagers Ltd?

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What does AP Eagers Ltd do?

AP Eagers Ltd [ASX:APE] core business consists of the ownership and operation of motor vehicle dealerships. Their main operations are in south-east Queensland, Adelaide, Darwin, Melbourne, Sydney and the Newcastle/Hunter Valley region of New South Wales. They also provide the facilitation of consumer finance.

Their operations are generally provided through strategically clustered dealerships, 65% of which are situated on properties owned by the company itself.

Anyway, what is the chart telling us?

What does the chart look like?

I find it helpful to bring up a chart. Here’s the weekly chart of APE.

ASXT

Source: STEX

In January this year the stock broke into new all-time highs.

What now for APE shares?

The last significant news announcement was nearly six weeks ago on 14 April, it was positive, improving revenues etc. This positive reaction is telling you something.

Recent Federal budget initiatives for small businesses will assist sales for this company and the chart is suggesting improving conditions.

According to their website they own $278 million of prime real estate positioned in high profile, main road locations in Brisbane, Sydney, Newcastle, Melbourne, Adelaide and Darwin. Knowing the real estate cycle as you do, you know how that places the company.

If you are unaware of the real estate cycle you remain at a significant investment disadvantage. You can get that knowledge here.

Cheers,

Terence Duffy,

Research Analyst, Cycles, Trends and Forecasts

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