Despite the company’s solid fundamentals, its shares have been laggard for the past several months. From a high of PHP 4.44 last November 2010, it even found itself to a low of PHP 3.11 less than a month ago. However, it was able to pick itself up since that low. After clearing the PHP 3.40 resistance, it sprung towards PHP 3.80 before it consolidated to what appears to be a bullish pennant pattern. And guess what? MPI just broke out from this pennant yesterday. So if we use the height of the pennant’s pole to gauged it’s upside, we would arrive to a minimum upside target of PHP 4.10 in the near term. Not bad. Any dip here and there of course would also be a good pick up level in my opinion.
By the way, this was one of our stock picks from the Absolute Traders event “BULL pa ba or BEAR na ba??? last March 25 which my colleague presented along with DMCI Holdings Inc. (DMC) and Philex Mining (PX) just before they broke out (kindly check here).