Hi there,
I just answered a question re: Tecsys last week in relation to price - here is my response:
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Yes, Tecsys (TCS) has had quite the runup since posting strong quarterly results. The company is trading at all-time highs and certainly looks expensive based on historical averages. We don't typically set price targets here, but analysts have an average price target of $43 per share. Furthermore, the company just crossed over into overbought territory with a 14-day RSI of 71 - that means the stock may be nearing a short-term technical pullback.
Long-term, the company is a strong play on the need for supply chain management in an increasingly complex global market. It is also a Canadian Dividend Aristocrat, one of only a few tech-listed dividend growth stocks.
In this market, it is very difficult to understand where stocks will go in the short term. It is why I like to average into a position. If I like the stock for the long-term, I'll take a partial position first and see where it goes in the short term before adding. Of note, I typically never buy when it goes into overbought territory. Although the risk is that it continues to rise and i miss out, I am ok to miss out on short term price movements to the upside. It works out for me more than it doesn't.
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There hasn't been any notable news since this answer. I like the company, and LOVE the space in which it operates (SaaS Supply Chain). HOwever, it does remain pretty expensive here - at least against historical averages. One could however, make that argument for most software stocks at the moment. Of note, the company did consolidate since my last answer, but is still hovering around overbought territory (RSI 67). Although it can continue to consolidate around these levels and avoid a drop, I would average into a position here.
As mentioned in my previous answer, the market just continues to chug upwards and it is anybody's guess where this will end up. I would however, view any pullback as a healthy one and an opportunity for a company like Tecsys.
Mat