article 3 months old

Star Entertainment Well Oiled

Technicals | Dec 08 2015


By Michael Gable 

OPEC had their meeting on Friday and, little surprise to us, nothing came of it and therefore the price of oil is tumbling again. So as we've done for the last year, we continue to advise that new investment in energy stocks is undesirable. However, we need to continue to realise the benefits that low oil prices will have on other companies. It is important to be aware of these major themes. To avoid the losing sectors, as well as identifying the winners. We've previously mentioned the benefit it will have to increased tourism and spending money and one such stock that is benefiting from increased spending and VIP patronage is The Star Entertainment Group ((SGR)), formerly Echo Entertainment Group. We have covered it in some detail this week and the chart is also looking as interesting, as are the fundamentals.

SGR shares have been trending higher since 2014 and the recent pause is still respecting that uptrend. It looks like that pause has occurred as a little 3-wave correction against the trend, such as the one seen at the end of 2014. After an impressive jump up in mid November, they have just been treading water here while the market eases back. There is a chance that SGR drifts back towards $4.60 again but the price action suggests it is more likely to have a go at $5 and if it can clear that on a weekly basis, then we should see it move to a new high.

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Michael Gable is managing Director of  Fairmont Equities (

Michael assists investors to achieve their goals by providing advice ranging from short term trading to longer term portfolio management, deals in all ASX listed securities and specialises in covered call writing to help long term investors protect their share portfolios and generate additional income.

Michael is RG146 Accredited and holds the following formal qualifications:

• Bachelor of Engineering, Hons. (University of Sydney) 
• Bachelor of Commerce (University of Sydney) 
• Diploma of Mortgage Lending (Finsia) 
• Diploma of Financial Services [Financial Planning] (Finsia) 
• Completion of ASX Accredited Derivatives Adviser Levels 1 & 2


Michael Gable is an Authorised Representative (No. 376892) and Fairmont Equities Pty Ltd is a Corporate Authorised Representative (No. 444397) of Novus Capital Limited (AFS Licence No. 238168). The information contained in this report is general information only and is copy write to Fairmont Equities. Fairmont Equities reserves all intellectual property rights. This report should not be interpreted as one that provides personal financial or investment advice. Any examples presented are for illustration purposes only. Past performance is not a reliable indicator of future performance. No person, persons or organisation should invest monies or take action on the reliance of the material contained in this report, but instead should satisfy themselves independently (whether by expert advice or others) of the appropriateness of any such action. Fairmont Equities, it directors and/or officers accept no responsibility for the accuracy, completeness or timeliness of the information contained in the report.

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