'Times Look Rosey For Chloride PLC'

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WJCCGHCC - Sat, 22 Oct 05 :

Not sure you're right. The chart has broken through 20 and 50 MA but the 200 MA is around 68p. Pretty much every stock in the market has broken down since the beginning of October.

Fundamentals-wise, last month's trading statement was extremely positive. They've dealt with the TPS businesses and are outperforming their market, with leadership in Europa and with good exposure to emerging markets, particularly in India where they are teamed up with the market leader. And demand for reliable power sourcing is increasing in every region.

They're not expensive either trading on a current PE of 16.5 (47% growth) dropping to 13.8 (21% growth) which, given their lack of exposure to the UK and recent upbeat comments, should be easily met.

Of course, if the whole market continues to crap out, they may suffer, but I'd say this is more a flight-to-quality stock than one which will suffer once the froth has been blown off.

Good luck with your short, but I'll be adding if they get to 70p.


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