Comment of the Day

October 18 2013

Commentary by Eoin Treacy


Eoin Treacy's view Death tends to be a steady cash flow business and in the stock market is represented by a relatively small number of shares globally. The UK’s Co-op is the large private provider of funerals in the country so when I recently saw an article suggesting that it has received bids for its funeral arm I was prompted to review the respective shares.

Dignity Plc. hit a medium-term peak near 1600p in July and found support this week in the region of the 200-day MA. While some support building is likely warranted, a sustained move below this week’s low near 1300p would be required to check current scope for an additional bounce. Australian listed Invocare has also returned to test the region of its 200-day MA.

US listed Hillenbrand broke out of a multi-year range in September and a clear downward dynamic would be required to check momentum. Service Corp remains in a consistent medium-term uptrend. Carriage Services accelerated to its April peak but found support in the region of the 200-day MA from May and continues to hold a progression of higher reaction lows.

In the MLP sector, Stonmore Partners yields more than 9% and manages graveyards. The LP has been drifting lower since hitting an accelerated peak in early 2011. It posted its first higher reaction low in two years in August and a sustained move below $21.30 would be required to question medium-term potential for additional higher to lateral ranging.

Please note - Both David and I expect to be back at full capacity next week as we complete our migration to new technical infrastrucuture.

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