Thursday, January 11, 2007

Telkom - upside potential

In my article on our 2007 yearly model portfolio, I commented that Telkom had gone nowhere last year, and yet it is still fundamentally sound and undervalued.

From its price chart, it appears it has completed an inverse head and shoulder pattern and subsequently broken out, pointing to a medium-term target of R173. I would not be surprised if its share price exceeds this target this year. Traders buy and hold until at least the target is reached.

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