Can this bombed-out small-cap turn a new page?

by from Trends and Targets |

Johnston Press (LSE:JPR)


Our last expedition into the potentials of Johnston Press, a Scottish media company reputed to alienate their readership with frequent anti-Scottish stances in their main title (The Scotsman), speculated as to whether a bottom of 7.5p would make a guest appearance.

Johnston Press (LSE:JPR) & The Dow Jones

It has, twice!

The reason for a re-visit is to specify target levels required to confirm bottom is actually "in" as we've a major issue should 7.5p break. We cannot calculate anything lower, never a comfortable signal. Of course, this does not mean the price is going to zero, just that we've exhausted our supply of tea leaves.

The share price requires to exceed 10p just to remove itself from the current downtrend. At time of writing, it's trading around 8.55p so in theory does not need much oomph to pull it from the gutter of share price damnation.

If we choose to take some hope from our 7.5p not actually being broken and thus, hinting of hidden strengths, anything now above 10p is supposed to generate lift to an initial 11.5p. If bettered, our secondary target calculates at 13.25p though, with any positive news, the price could easily accelerate to 16.25p.

In summary, our argument is fairly straightforward. If the price betters 11.5p, there's an initial belief the price has actually bottomed and some continued growth can be hoped. For the longer term, should the share ever close a session above 17.5p, it becomes a pretty viable play for some strong recovery. But we'll need re-run the numbers.

Source: interactive investor          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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