Gulf Navigation, GULFNAV, is a stock people think is very undervalued. That belief stems mainly from the fact that the stock’s price is far away from the IPO price of 1 dirham. As it languishes below ONE DIRHAM a share, GULFNAV has been fighting to close above 0.57 on a weekly basis.
A weekly close above 0.70 may negate the relentless downtrend since mid October.
This is a stock with bearish momentum that could be cancelled by any showing above 0.64
We may yet see 0.35 or 0.30 when the company stock price may look attractive enough for it to begin possibly buying back shares.
The company declined 11 per cent in the last 12 months in Dubai trading, compared with an 8.4 per cent drop for Frontline Limited, the world‘s largest operator of super tankers. Gulf Navigation, which held an initial share sale in 2006, may buy back as much as 10 per cent of its stock, Wistoft said.