Brief - PAG - PrimeAG Australia

This is going to be a very brief note about PrimeAG (PAG). Rcently PAG caught my attention because of the recent strong uptrend. I have been studying a few technical gurus (Gann, Weinstein),  methods on Technical Analysis and clearly the strong uptrend would be one reason to buy. See graph below.

However, although I may wish to go for a short term, technical play, I also glanced at the fundamentals. One of my recent indicators I followed, which I will use more of, is the ROE. I would be looking for ROE of at least 15% for long term play. For short term play, a smaller ROE will suffice.

However, PAG's fundamentals is this: ROE is almost Zero. It had made a loss recently, ie. negative earnings and profit. One of the only positive ratio is the book value of $1.89 (from CMC Markets). Based on this, I will make no further analysis for now.

One point more on the Technicals, the uptrend has not been strongly supported by heavy volume. If there was heavy volume, then the case based on technicals would be stronger.

Note to Self: avoid this stock unless I feel very very lucky.