GULFNAV 2012

Gulf Navigation Holding (GULFNAV), discussed elsewhere on this blog several times in the past…

2012 so far:

0.18 — ALL TIME LOW hit on 17JAN2012;

0.185 — ALL TIME LOW (closing basis) hit same day

0.429 — YEAR HIGH on 29FEB2012

0.417 — YEAR HIGH (closing basis) on 04MAR2012

GULFNAV rallied 138% (125% on a daily CLOSING basis) from its historic ALL TIME LOW in very short time (about a month).

In retrospect, that vicious rally looks like a typical bear market rally, as the stock has proven weak throughout the year.

Why is it weak?

The stock has gone beyond the lower of the widely used FIBO levels (68.2%) in retracing the rally earlier in the year.

0.18 – 0.185 is the obvious level to watch now.

Hope lies ahead, on daily closes above 0.25, and especially a WEEKLY CLOSE above 0.26

GULFNAV 2010

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.