Time to get excited about Brave Bison shares?
13th July 2022 07:50
by Alistair Strang from Trends and Targets
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This UK small-cap has just hit a three-year high following a rally since late June. Independent analyst Alistair Strang looks at potential to go even higher.
Using an Android App called Feem to routinely transfer files wirelessly between a PC and a tablet, it was easy to accept the naming convention it invents for temporary devices on the network. A tablet may be briefly known as ‘Angry Bunny’, a computer assigned ‘Shiny Grasshopper’.
When we came across Brave Bison Group (LSE:BBSN), it was easy to make as assumption someone in their marketing department had been “inspired” by the Feem App, the name “Brave Bison” making little immediate sense.
Trawling through their website, the origins of the name appear absent but, obvious, is the important detail this media, marketing, and tech company appear to be the real deal.
Their client list looks enviable, their listing of international offices impressive, and a history of growth through M&A looks useful. A wry smile was permitted when visiting their Wikipedia page, a warning of “too many buzzwords in use” but given the company are a marketing entity, it wasn’t a surprise.
The company share price has proven pretty stagnant for the last few years, but is now starting to give early signs “something” may be happening.
We’ve shown an inset on the chart below, the share price breaking though a long-term downtrend by the market opting to ‘gap’ the price up. For five sessions, exquisite care was taken to ensure the share price didn’t fall below the point of trend break at 1.85p. Logic tends to suggest the market has plans for the future and, with the share currently trading around 2.1p, Brave Bison doesn’t need to stretch its legs too hard to get the price moving.
Above 2.35p looks capable of triggering some growth to an initial 3.2p. Should this level be exceeded, our secondary works out at 3.75p, this being a level where the visual implication is of some hesitation.
Past performance is not a guide to future performance.
Only with growth above 3.75p should things become especially useful for the longer term as a stampede to 6p becomes very possible, a level which shall almost certainly represent the start of a new long-term chapter in share price recovery.
For everything to go horribly wrong, the share price needs below 1.6p, risking once again joining its American Bison cousins in becoming almost extinct.
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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