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You could have saved 5%

Posted: 11/26/2012 - 11:19 am

On November 13, we said that there was little upside potential in Mobily despite the continued outperformance in the stock. Our advice was to lock in the gains especially upon a rebound to 75 (read: An outperformer that…).

Indeed, the stock witnessed heavy selling pressure after bouncing to 75.5 marking a loss of 5% from our main selling point.

As shown by the chart, the latest sell-off has pushed the share price to an important up trendline that has lent support to the stock since late May.

Though the argument for a short-term bounce off the line is very valid, we would forgo the potential opportunity and look to buy in a less risky market environment.

click to enlarge

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