Insiders were laying into🎌 Econach エコナック🎌 in advance of its stellar quarterly report!

   I previously posted an alert on this undervalued Japanese equity on Jul 1st '24 a month before the Aug 5th Black Monday selloff sent it down to a low of ¥90 . The price last popped up to a ¥151 peak on the release of the prior, also stellar, quarterly report but never went lower than ¥110 thereafter. The days leading up to these news releases also saw some price firmness, but the latter was much more pronounced, with volume fluctuating between 53,500 & 323,200 shares in early Jan, & between 61,500 & 234,400 early this month.

  The co. went on to announce a 2.4-fold jump in 3Q profit  after the Tokyo close, on top of exceeding its full-year forecast gain by 5% vs 57% of last year's forecast. Predicted full-year revenue will be the highest in over a quarter century if met, the last year when it was higher was in 1993 when turnover clocked in at ¥2.248 billion  but red ink flowed throughout the nineties save in '94. Net profit for FY'25 is forecast to be ¥130 million, 24% less than that solitary profitable year 30 years prior & less than a quarter of the all-time record ¥631 million profit in the bubbly year of 1985 when it soared to an adjusted peak of over ¥6,000. Revenue was elevated in that decade, the co. chalking ¥4.6, ¥3.2,¥2.4,¥2.4,¥3.9  & ¥3.4 billion from 1985 till 1990, when it only earned ¥50 million profit. [Further details of past EPS are available in that prior blog post last year].

    

 Chartwise, the stock could soar past its 52-week high of ¥161 on 26th Mar '24 tomorrow & based on the very, very long-term MACD crossover[see above], is poised for a long, steady rise reminiscent of the early & late '70s, as well as the early '00s. On the monthly timeframe, MACD crossovers seem to also be a good harbinger of gains to come[ see the above green diamond markings]. At a minimum, it could register a more staid advance as was seen from 2011 till 2015.