An AIM share with potential to double
19th July 2022 07:46
There's something interesting going on with Deltic Energy reckons independent analyst Alistair Strang. Find out what it is here.
The temperature on Monday made us assume most folk would start the week without being too fascinated with the markets, but a flurry of emails regarding Deltic Energy (LSE:DELT) proved this was not the case.
However, we're not inclined to search for big words to pad out this report into the company formerly known as Cluff.
Even here in Argyll, it is rather hot, our infrastructure not in any way inclined toward dealing with hot days, but I finally discovered what the AC button on the Toyota is for. Thankfully, writing this from inside a running car hasn't proven necessary this evening, a slight breeze coming in from the sea has reduced the temperature down to a manageable 14c currently.
Without a doubt, something interesting is going on with Deltic. Presently trading at around 2.9p, the share need only exceed last weeks 3.15p to hopefully trigger further growth to an interesting 3.28p.
Should this level be bettered, our secondary calculates as an all time high (under the name Deltic) of 4p, an ambition which rather neatly matches a glass ceiling which existed for Cluff since 2017.
To become seriously excited for the long-term prospects, the share price needs to actually close above 4p, this almost allowing the price to effectively double again from current levels.
Past performance is not a guide to future performance.
Alas, for now, despite it looking fairly encouraging, 4p provides about the sanest target level.
If everything intends to go wrong, closure below 2.7p would provide a potential early warning as it would tend to scrub our immediate upward calculations. But the price would need to trade below 2.25p to really indulge in concern, calculating with the potential of reversal to an initial 1.42p with secondary, if broken, at a hopeful bottom of 1p.
Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.
Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea.
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