Technical revision of an undervalued insurance giant
Genworth recently took a nosedive on concerns related to one time expenses, a good will impairment and a capital reserve charge. Another capital reserve charge is possible for the next quarter. All in all, this company is trading at a wide discount to long term earnings power. Through a sum of parts analysis, we have currently valued the business at $14 a share. However once return on equity improves, reflecting book value more accurately, we come up with a 0.6x bv figure which generates a $18 price target --- this will likely take 2-3 years to take full effect.
The reason I'm analyzing the 30 minute chart is because we have very interesting volume going on in the prints just below $9 a share. In the three circles, I have noticed heavy accumulation which are likely related to mutual funds or hedge funds. This is a critical area for prop traders, possibly a buy limit level. The good news is that we will most likely NOT re-test this support. Prints are consolidating and technical indicators are projecting a measured move to the positive side following this descending wedge formation. The two candles highlighted in RED is confirmation of this breakout. This is not a dead cat bounce.
Load up and be patient. This gap will fill. It may arrive at $10.50+ before the next ER.
The reason I'm analyzing the 30 minute chart is because we have very interesting volume going on in the prints just below $9 a share. In the three circles, I have noticed heavy accumulation which are likely related to mutual funds or hedge funds. This is a critical area for prop traders, possibly a buy limit level. The good news is that we will most likely NOT re-test this support. Prints are consolidating and technical indicators are projecting a measured move to the positive side following this descending wedge formation. The two candles highlighted in RED is confirmation of this breakout. This is not a dead cat bounce.
Load up and be patient. This gap will fill. It may arrive at $10.50+ before the next ER.
Thông báo miễn trừ trách nhiệm
Thông tin và ấn phẩm không có nghĩa là và không cấu thành, tài chính, đầu tư, kinh doanh, hoặc các loại lời khuyên hoặc khuyến nghị khác được cung cấp hoặc xác nhận bởi TradingView. Đọc thêm trong Điều khoản sử dụng.