Editor’s note: This article was first published in October 2013; the share prices, technical levels and market outlook it gives for Ezentis and Gowex are from that time. These October 2013 calls are kept as a historical record and are not investment advice. Gowex collapsed in July 2014 after its chairman admitted that its accounts had been falsified, and the company went into insolvency.
Ezentis
Many of those who bought into Ezentis when we recommended it are asking me what to do now: sell or hold…
When I invested in this company, gradually increasing my exposure until it became my biggest bet, I did so with the long term in mind. Technically, Ezentis has performed wonderfully, breaking through the resistance levels it has met along the way, although this latest resistance (€0.35–0.36) seems to be proving harder to crack.
Combined with the overbought levels, a corrective move may be coming. Since nobody knows for sure whether there will be a correction, how strong it will be or how long it will last, I would not risk trying to get out to scrape together some extra return, because if it keeps rising, one of the targets I do not see as being that far off for Ezentis’s share price is €0.60, and if the fundamentals back it up, so much the better.
*This scenario assumes stock markets that go on believing we are coming out of the crisis, which I really do not think is happening, but on that point: shhhhh!
In Ezentis’s case, if things turn ugly in the benchmark index, it will probably be affected, so keep an eye on that.
Gowex
Gowex grew during the crisis and will become much bigger during the recovery, so it is a stock we should keep holding in our portfolio regardless of economic conditions. That said, I have not yet studied its accounts, its growth and its growth prospects in depth, but I would venture to say (and it is only a hunch) that it is a company to which, over time, we should apply the saying “let someone else make the last euro”.
Still, I will try to take a look at it soon.
As we can see in the chart, its performance so far is unbeatable, and in the short to medium term I see no reason to take it out of our portfolio.
Featured image: jose a. del moral, CC BY 2.0, via Flickr.
