What’s Happening to the Share Price of Fleetwood Corporation Ltd?

What does Fleetwood Corporation Ltd do?

Fleetwood Corporation Ltd [ASX:FWD] manufactures and supplies pre-fabricated homes to the affordable housing and resource sectors. They also service the education sector by providing relocation, storage and refurbishment of transportable classrooms.

FWD has a recreational vehicles division too, manufacturing caravans and campers, as well as ute trays and accessories.

The half yearly report ending 31 December 2014, was disappointing, revenues were down 18%. However, the report was upbeat stating that the weakness in the mining accommodation sector was more than offset by a strong education market and a growing contribution from the prefabricated affordable housing sector.

That’s interesting, but what is the chart telling us?

What does the chart look like?

I find it helpful to bring up a chart. Here’s the weekly chart of FWD.

Fleetword Chart

Source: STEX

The chart perhaps confirming the upbeat statements contained in the half yearly report. The company is potentially placed for revenue growth now. Let’s wait and see.

What now for FWD shares?

The company had more positive news today, a successful retendering to the Victorian Department of Education in regard to the relocation and refurbishment of transportable classrooms. So you just have to watch it now to see how it reacts to the news.

This follows the positive news in May. FWD announced that it had executed an agreement with Gateway Lifestyle Group to become the exclusive manufacturer and supplier of pre-fabricated homes to its manufactured housing estates in Queensland and northern New South Wales.

At Cycles, Trends and Forecasts we have profiled the manufactured housing estates before, this could well become a mega-trend for baby boomers wanting to downsize, and Fleetwood Corporation seems well placed to profit from this trend.

When you add that to the strong demand for transportable classrooms from the education sector, this is a company you could consider following, seeing how it reacts to news and if it forms some higher bottoms on the weekly. You just need a little charting knowledge to take advantage of it all. And you can get that knowledge here.
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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