What is Happening to the Share Price of Catapult Group International Ltd?

What does Catapult Group International Ltd do?

This is a follow up to a posting I made on June 30, 2015, which you can view here. If you did not catch that post, Catapult Group International Ltd [ASX:CAT] is a company that provides wearable hardware, combined with sophisticated analytical software to enable elite sporting organisations to monitor and measure athletic performance. The company’s products are used worldwide, generating 70% of their revenues from overseas markets.

Anyway, in the previous posting the following was stated;

‘For the last month or so, the stock has been stuck in a sideways pattern. Note; this is in contrast to the general market which has been down over the same period.’

‘…The fact that it has been able to hold a line for the last month might be a sign of strength…’

Well, what is the chart telling you now?

What is the chart telling you?

As always, I personally find it helpful to bring up a chart. Here’s the updated daily chart of CAT:


Source: STEX

Whilst the general market was being sold down, Catapult Group was able to hold a line. That was telling you something. In the half-yearly report, the company forecast increasing revenue growth and the chart perhaps confirming that.

The stock was up further today and at the time of writing was trading at $1.30.

What now for CAT shares?

One could perhaps expect a news announcement to come from this company, which is likely to be positive in nature. Let’s wait and see.

This company has changed their business model from an upfront price to a subscription service, and the business model appears to be working satisfactorily at present.
With all the ever-increasing money surrounding professional sport, this company could be in the right spot.

In hindsight it looks easy, but this stock was and does trade thinly. It’s not always easy to trade.

You can see though how the charts can be a useful tool to add to your investment armoury to guide your investment decisions. With a little charting knowledge and appropriate risk management, you can maximise your chances of success in the market. Go here to find out more.
Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

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