Blackbird: can its shares soar to this analyst’s level?
The small cap has bounced back from March’s low. Our chartist sees where things could go next.
28th October 2020 09:41
by Alistair Strang from Trends and Targets
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The small cap has bounced back from March’s low. Our chartist sees where things could go next.
Blackbird (LSE:BIRD)
We've been taking a special interest in video-associated companies lately, due to the increase in working from home due to the pandemic.
This focus is easily justified by a look at the FlightRadar website, showing that most transatlantic flights are for air cargo, not people.
Surprised by an email asking us to review Blackbird (LSE:BIRD), we note they are NOT involved in video conferencing, but instead video editing via a web browser.
The company, once known as Forbidden Technologies, rebranded as Blackbird in 2019 using the name of its cloud video platform as its new corporate identity.
A glance at their client list was immediately fairly intimidating, showing Microsoft, Google, Sky, and even Arsenal football club numbered amongst their client lists.
It didn't take long to figure out their editing format may find favour amongst those of us who've prepped a ‘professional’ video presentation while failing to notice a full ashtray in the foreground and several bottles of wine in the bin.
Joking aside, perhaps the company have a product whose time has come, as recent price movements justify a degree of interest and suggest some deeper research may be an idea.
The immediate situation is fairly straightforward. Price strength above just 25p should prove capable of an attempt at an initial 28p, a fairly tame ambition.
If exceeded, our longer-term secondary calculates at a more attractive 39p, doubtless along with some hesitation due to historical behaviour at this price level.
For the longer-term, absolutely key will be price closure above 39p, thanks to a distant sounding 68p making a lot of sense.
Before becoming enraptured with such a long-term calculation, the harsh reality is Blackbird were trading above 250p twenty years ago.
This suggests the share needs to soar above 75p to give the first solid hint a 'proper' recovery is coming!
For now, we're fairly impressed with recent movements and suspect 39p shall become a reality on the immediate cycle. The price will require to close a session below blue, presently 20p, to justify panic.
Source: Trends and Targets Past performance is not a guide to future performance
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.
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