This small-cap has more than doubled in 2021 so far. Could it end up tripling in value?
An email asking our thoughts on Woodbois Ltd (LSE:WBI) couldn’t be ignored. Anything relating to timber fascinates, perhaps due to our exploits with a chainsaw constantly proving there is some skill in tree butchery, skill which proved completely absent last weekend.
To judge by the Woodbois website, they foolishly don’t use software designers nor surveyors to work their timber. Instead, this Africa-focused timber specialist employ folk who know what they’re doing, sourcing sustainable timber for supply to an international customer base.
Recent share price movements tend to suggest some recovery is probable, especially as the share is now trading above the pre-Covid-19 high, something we’re inclined to view optimistically as it generally bodes well for the future.
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Presently trading at around 6.9p, Woodbois need only exceed 7p to suggest near-term travel to an initial 8p. If exceeded, our longer-term secondary is slightly confusing at either 9.5p or 10.5p. The culprit for this confusion is circled in Red on the chart, an illogical manipulation gap in July of last year. Visually, an attempt at the 10.5p level makes some sense thanks to previous share price hesitation back in 2018.
For things to go horribly wrong, the share price needs to relax below 4.8p, as this introduces the potential of a visit to 3p eventually.
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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