Technics Oil & Gas - A Good Entry Level

Current Technic Gas & Oil stock price looks like a good entry level both technically and fundamentally.

Technical Analysis 

• The stock price broke out from a Falling Wedge with a price target of $0.63.
• The stock price came back to test the Falling Wedge previous resistance and rebounded from this resistance turned support level.
• Since then, the stock moves above 20D, 50D and 200D MA and stay above 78.6% FR support.
• A "higher high, higher low" up trend chart pattern is observed. 

Fundamental Analysis (Base on latest quarter financial performance) 

• Increasing Net Operating Cash Flow
• Dividend about 4.8% (base on $0.57 stock price)
• ROA = 14.9 (Annualised)
• ROE = 32.1 (Annualised)
• Order Book stands at $82 million.
• Management expect better FY2010 than FY2009 base on current order book and project schedule.
• Company shares buy back recently between $0.565 and $0.57 these few days.
• PE = 12.89 (base on $0.57 stock price) versue 2008 PE of 20.6 and 2007 PE of 26.4