Allied Minds (ALM): Activist Power

It is just as well that the look here at Allied Minds is essentially a technical one. This is because one could probably write a book regarding the recent history of the group, especially given the way that former star fund manager Neil Woodford’s “investment” vehicle, Woodford Patient Capital Trust has near to 20% of the technology incubator.

almlogo

However, the latest bonus cutting scheme and the new Co-CEO arrangement look as though they will trigger a long-awaited lasting turnaround for the stock, which is still trading some 30% under NAV despite the recent share price recovery.

alm

What can be seen on the daily chart of late is the clean break above the 200-day moving average last month at 63p, the testing of old 70p resistance as new support this month, and the latest bull flag break at 80p. The view now is that at least while above 70p – and most likely above 80p predominantly, the upside here could be as great as the top of a rising October trend channel at 110p – towards the NAV level. The timeframe is as soon as the next 2-3 months.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

Leave a Reply