TG21 Plc - a new name to go with the new beginning

I always look to the charts (and the tea leaves) to see where technical resistance and support may be. This time last year we saw a rally to 13.75p and then a fall back. Could that happen again? Quite possibly, without any news.

Are all recent buyers long-term holders? I suspect a few traders will have bought on TA with a view to taking profits around 13.50 - looking for a quick 5-10% profit. The wide spread makes it difficult to trade TGP and the volumes would indicate that there are few short-term traders.

I suspect also that many weak holders will have got frustrated during 2005 and sold the rallies - which have been enough to push TGP down each time.

The 13.75 resistance level will probably see a bit of profit-taking in the 13.25 to 13.75 range. What will attract buyers to push us through 13.75p? It would need some company news or, as has been said, some tips in newspapers or financial journals. As VS says, Shares Mag may want to say how clever they are, which could add impetus. IC have tipped Toad before at much higher levels - early in 2004 i think - although they got egg on their face that time (they were much too early).

I had expected the final acquisition of 21C by now. TGP have 75% and an option on the final 25%. Acquiring the remainder is just a technicality but would be seen as fully merging the company. We may then see Paul Frodsham appointed as a director of TGP – Frodsham holds 2.3% of TGP.

Another acquisition is also possible. There are many small companies like 21C who would be able to grow with TG21’s service infrastructure and innovation. TG21 have said many times they are “actively seeking acquisitions”. Now would be a good time to release news of one.

If we can break 13.75 the next technical resistance appears to be in the 16-17p range. This is stronger resistance and we would need news to hold this level or break through.

A happy and prosperous New Year to all Toadies.