Stock: Seek Ltd (SEK ASX)
From the 2009 lows around $2.00, shares in Seek are currently trading at 10 times that value. Should you come across anyone who has held the stock over this period, there’s a fair chance they have a permanent smile embedded on their face and deservedly so. Not only have they enjoyed holding a 10 bagger in terms of capital growth, they have also been repaid $2.50 per share in dividends for that initial $2.00 outlay, cementing the trade as a ‘free carry’ over time. Taking a ‘zoomed out’ look at the monthly chart that captures the past decade, we can see the run-up off the 2009 lows followed the textbook pattern of previous resistance becoming new support at both the $8.55 & $11.40 levels. Shifting our focus to the past 5 years, we can see the significance of the key support zone between $16.20 & $18.00 which is defined by the sheer amount of price congestion that has occurred between these levels. In late 2017, price finally broke to a new high on the upside, taking out the upper band of the key support zone at $18.00 and has since held firmly above.
What Does Seek Do?
Seek Limited (SEK) operates an online employment classifieds platform providing in 12 countries. Operating in three main business segments – SEEK Employment, SEEK Learning and SEEK International, the company is considered to be the global leader in the creation and operation of online employment markets. SEEK owns leading job boards in Australia, New Zealand, China, Brazil, Mexico, Africa and across South East Asia and has exposure to 4 billion people and relationships with over 800,000 hirers and 180 million candidates.
To access a list of company announcements, financial summary & dividend history – Click Here.
The Baron’s Brief – Official Summary
The Bulls are firmly in control of Seek. The $18.00 level at the top of the key support zone is the line in the sand, with any retracement back towards it seen as an opportunity to buy (get long) in line with the prevailing uptrend. The Baron’s bullish bias will remain in play all the while that price can hold above the low of the key support zone at $16.20. A significant break & close below $16.20 would be cause to re-assess.
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Disclaimer: The information contained in this article has been prepared solely for the entertainment & educational purposes of the reader and does NOT constitute financial or investment advice. Any examples presented in this article are for illustration purposes only. No person, persons or organisation are authorised or permitted by the authors to take any action on the reliance of this information without first consulting an authorised, accredited financial planner or advisor. The authors are entitled, at their sole discretion, to hold positions in the above-mentioned stock/s. The authors accept no responsibility for the accuracy, completeness or timeliness of the information contained in this article. Disclosure – No positions are currently held in SEK – ASX at the time of publishing this article (This is a disclosure and NOT A RECOMMENDATION).