Just for you Percy

EBO share price has a habit of trading in price ranges, The ranging often lasts for some time. Good thing is that each trading range is higher than the previous one.

The latest trading range lasted from May 2013 (about the time Symbion acquisition was announced) to the end of last month. During those 2 years (well almost) the share price averaged $9.63 and pretty much in a +/- 8% range (weekly prices). Pretty boring eh.

EBO has now broken out of that range. If history is anything to go by it is likely it will range trade for another year or two. If it does the $10.40 which was the top of the range just broken will become support and $12.20 will become a new resistance. Prices will range between $11.30 +/- 8%.

Interestingly the market isn't as excited on EBO as it was in 2013. Back then and pre-Symbion and after a year or so of Masterpet under their belt EBO earnings were about 47 cents/share. Current forecast is say 70 cents/share. So earnings/share up nearly 50% but share price only up 25%. Maybe overvalued back then and fair value now?

Percy, as you recall I sold my EBO shortly after the Symbion acquisition at just under 10 bucks. That was the end of a great trade from about 6 bucks shortly after the Masterpet acquisition announced over Christmas 2011. the market took a while to recognise the value in Masterpet but they did in the end. I have yet to get too enthusiastic about re-entering EBO, as the fundamentals just don't turn me on and I can't see a 25% pa to 30% pa upside over the next couple of years. I generally look for more exciting things.

If that 25% does happen I won't have any regrets but will join in your celebratory drinks whenever that happens.

Still keeping a close eye on Ebos though.