XPS Pensions Group looks positive
18th May 2023 07:13
by Alistair Strang from Trends and Targets
This small-cap pensions business has had a great 2023 so far. Independent analyst Alistair Strang looks into his crystal ball to see how the rest of the year might go.
We tend become quite cynical when stumbling across a company boasting of being listed in a “Sunday Times Best” list. A large part of the reason is the important detail companies need to pay before being considered for such an “accolade”.
There’s another little nark bothering us about XPS Pensions Group (LSE:XPS). We’re about to launch into a quite optimistic scenario for the share, due to recent share price movements. But there’s something quite strange about the stock market in the UK and USA.
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Essentially, the further down the alphabet a share is listed, the harder the share price needs work to produce anything positive. At times, we feel folk become bored examining listings, losing interest as they scroll down the 26 letters of the alphabet. While this rather hysterical conclusion has many exceptions to the rule, a share occupying the 24th letter certainly provides some pause for thought.
However, to take a positive stance against XPS, it appears movement next above 178p should hopefully trigger near-term movement to an initial 200p with secondary, if exceeded, at a longer term 235p and another new all-time high.
The share price needs below 146p to ring alarm bells, risking provoking reversal to an initial 135p with our secondary, if broken, down at a visually sane bottom of 103p
In this instance, despite our alphabet-phobia, things currently look quite positive for the largest pure pensions consultancy in the UK.
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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