Telecom Plus shares look useful
7th June 2022 07:31
The shares are racing toward a new high and independent analyst Alistair Strang is 'pretty optimistic' about the chances of breaking new ground.
To be honest, it was easy to completely forget about the little boxes which plugged into a phone socket, routing outbound calls to cheaper provider than British Telecom. This was back in the late 1990’s, when BT tended to treat innovation as a nuisance, and sometimes even behaved as if this new fangled Broadband was inconvenient.
It transpires Telecom Plus (LSE:TEP) were behind the Smart Box, now rebranded as Utility Warehouse. It’s quite nice to realise an innovator not only survived but has actually flourished in the period since.
Now trading at around 1,720p, the shares could be picked up for 62p back in 2002.
Currently, something quite interesting is happening with the Telecom Plus share price as it’s achieving higher highs than at any point since 2014. Perhaps more importantly, there was some sort of glass ceiling vaguely around the 15.50 quid level and the share appears desperate to leave it being.
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Now, above 1,724p calculates with the potential of price growth to an initial 1,870p, a point at which we’d suspect some hesitation. Unfortunately, there’s an argument developing against the potentials, should such a level be exceeded.
Above 1,870p, certainly presents a secondary target of a nice round 2,000p. However, if our 15.50 quid glass ceiling argument is valid, the share price could simply continue acceleration to a longer term 2,340p.
We’re pretty optimistic against this one and it needs below 1,460p to foul our calculations for the future.
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.
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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