While this column generally likes to give readers an analysis of stocks we haven't written about before, it is sometimes valuable to revisit situations when things change to see how our ideas have fared in the real world and present new opportunities.
Back in June when we analysed energy supply company Duet, our analyst, Paul Ash, the Victorian president of the Australian Technical Analysts Association, identified a resistance level at $1.90 that it had just broken and said strength would continue if it stayed above this line.
That resistance level was in place for three years. In July, after the aborted breakthrough attempt beginning in April that we referred to in the last column, Duet went through that resistance line and has maintained the gain.
In September, it reached a post-crash high of $2.20. Although it has since fallen back a little, Ash says it remains in a broad uptrend that began in April and is reflected in higher lows and higher turning points.
That uptrend has recently flattened but the stock remains in a pattern above $2. If you're in the market with Duet, Ash says strength and the possibility of further gains remain while the price holds above $2. A weekly close below $2 should trigger an exit, he says.
If you're looking at buying, then a trigger price would be at $2.12 or the recent high of $2.20. If the pattern of strength continues, Duet might rally towards $2.65 over the next six months, Ash says.
Anyone planning to gain exposure to Duet by holding direct stock will enjoy an 8 per cent dividend yield. Its return for the past year has been an outstanding 26.4
per cent and 15.7 per cent over three years.
It raised capital last year at $1.52, giving a handy profit to those who bought in. The money raised helped finance investments in the Multinet Gas business and the Dampier to Bunbury gas pipeline in Western Australia.
The recent decision to move management rights inside the group by paying out AMP Capital and Macquarie Group's management rights for $95.6 million should benefit shareholders in the longer term.
Duet is what is known as a stapled security, which means it is made up of different entities brought together and listed as one. In Duet's case, the stock is built up of some energy trusts run as managed investment schemes and a public company.
This column is not investment advice.
rodmyr@gmail.com
Frequently Asked Questions about this Article…
What happened when Duet broke the long‑term $1.90 resistance level?
When Duet broke the three‑year resistance level at $1.90 (first flagged by analyst Paul Ash), it held the gain through July and reached a post‑crash high of $2.20 in September, signalling a restarted uptrend that began in April.
Is Duet currently in an uptrend and what technical signs should investors watch?
According to technical analyst Paul Ash, Duet remains in a broad uptrend reflected by higher lows and higher turning points since April, though the trend has recently flattened. The key sign to watch is whether the price holds above $2; a weekly close below $2 should trigger an exit.
What are the suggested buy trigger prices for Duet stock?
The column cites a buy trigger at $2.12 or a move above the recent high of $2.20; if the pattern of strength continues, Ash suggests Duet might rally toward about $2.65 over the next six months.
What sell signal or stop‑loss does the article recommend for Duet investors?
Paul Ash recommends that strength and the possibility of further gains remain while Duet holds above $2, and that a weekly close below $2 should be treated as a sell signal or trigger to exit.
What dividend yield and historical returns does Duet offer investors?
The article states Duet offers an approximately 8% dividend yield, with total returns of about 26.4% over the past year and 15.7% over three years.
What was Duet's recent capital raising and how was the money used?
Duet raised capital last year at $1.52, which gave early buyers a profit; the funds helped finance investments in the Multinet Gas business and the Dampier to Bunbury gas pipeline in Western Australia.
What is the management rights change at Duet and how could it affect shareholders?
Duet paid out AMP Capital and Macquarie Group’s management rights for $95.6 million to move management rights inside the group; the article suggests this decision should benefit shareholders over the longer term.
What does it mean that Duet is a 'stapled security' and how is the stock structured?
A stapled security means different entities are combined and listed as one. Duet is made up of energy trusts run as managed investment schemes plus a public company, listed together as a single stapled stock.
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