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An 11.5% gain on the second tranche

Posted: 03/30/2013 - 12:33 pm

On March 11, we made the case for further gains in Saudi Industrial Development (2130) and we advised keeping the remaining positions in the stock with an exit target of 18.40 (read: Protect your 8.1% return).

As expected, the stock rallied on to hit our target for a gain of 11.5% on the second tranche. In fact, the share price has moved well above that level to hit a high of 19.25 before retracing back to 19.00.

Judging by the price action and the stock’s break above the resistance at 18.40, a move to the next barrier at 20.5 seems fairly probable. However, we cannot justify an entry based on the existing reward/risk profile.

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