It is an early Monday morning and I have just finished my stockscreening and basic fundamental research for any new stocks that I will monitor for buying and also cycletrend chartings for my exisiting holdings, to make sure that the reasons for holding my stocks has not changed.
Interestingly the filtered stocks include all my current holdings, with only one new entry, EIX (Edison International), an electrical utility company. The others are GCO, FRX, OSG and BHI which I have discussed previously. For these stocks, the fundamentals has not changed and cycletrend and technicals for position play are still on track for growth. So I will discuss about EIX here.
Before we discuss EIX, let's take alook at the DJIA latest cycletrend and technical candles. As you can see from the chart below, Cycle Trig shows that DJIA will have more downside this week before moving up. The doji in candle formation indicates that market particpants are looking for direction. With the price in the middle of the bollinger band and combining the cycle and candle, I would expect the market to stay sideway or negative this week.
Now, about EIX. Here is an extract from yahoo.
Edison International, through its subsidiaries, engages in the supply of electric energy in central, coastal, and southern California. As of December 31, 2008, the company served approximately 432 cities and communities, and a population of approximately 13 million people. It also involves in the development, acquisition, ownership, leasing, operation, and sale of energy and capacity from independent power production facilities, as well as conducts hedging and energy trading activities in power markets. In addition, the company invests in energy and infrastructure projects, including power generation, electric transmission and distribution, transportation, and telecommunications, as well as in housing projects in the United States. Edison International offers its services to commercial, residential, agricultural, and industrial customers, as well as public authorities. The company was founded in 1886 and is based in Rosemead, California.
From my findings, the company's revenue is consistent, with positive operating cashflows for the last 5 years. Other fundamentals, ie., PE, PEG etc were part of my stock screening and the company has met all other fundamentals I required. So it looks good so far.
Let's look at the cycletrend and candles. As we can see below, the stock's cycle trig,candle and bollinger band shows no buy signal in the near future.
Well, though the fundamentals are good, I will give the stock a miss till the charts show improvement.
Francies Cheng
BBus MAppliedFinance
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