I'm not much of a technician, but I think that the share price may be starting to form the same cup and handle it did on the last dramatic price rise. This is totally related to fundamentals, and proof that the dairy sale improved the company.
Pre-dairy sale, the share price was $1.20 to $1.60. Post sale, with some panic dips in the $.80s, it's been mostly right around $1.00.
I believe that as financial performance and other catalysts reveal in the next few months, they will validate the strategy of trading the dairy for dramatic profit center expansion.
If we can get back to the $1.20 to $1.60 based on Form-10 approval and Q2 results, that would be optimal. A handle might form thereafter as all buyers would be made whole and a little profit taking would ensue.
The real jump will happen when the triple digit growth of the fish, cattle and new businesses is fully established. 2011 results will be about the same as if the dairy would not have been sold, but growth in the remaining businesses will be MUCH, MUCH better. And MUCH, MUCH better 2012 prospects will have been proven.
This will start to be in evidence with release of SIAF's Q3 results, if they execute. And if they reiterate meet or beat guidance and talk about 2012, future will look rosy, and not require any new confidence or faith in business performance and trajectory.
That's when I'm hoping the cup and handle forms the basis for a take off to new highs, toward the later part of 2011. Then a double + in 2012.
Hard to imagine that won't happen, if they do what they've said they'll do.
Continued press releases trumpeting milestones being met along the way would smooth the path and foster investor confidence.
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