With the company announcing a rights issue last week and going ex-dividend for 62 cents today, shares in WPL have been very active.
Our ALGO engine triggered a buy signal on Monday at $28.63.
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This signal has a technical basis on the “higher low” structure relative to the $28.20 low posted in September and the $22.90 low from November 2016.
From a fundemental perspective, we believe the company’s decision to raise money to secure a bigger stake in the Scarborough gas field ensures steady earnings growth during 2018 and beyond.
We expect to see investor support for WPL in the $28.50 area and a move back into the $31.00 handle over the medium-term.
Woodside
