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Strategies & Market Trends : Underexposed Technical Analysis

AQN 5.770

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From: Underexposed	1/20/2020 6:54:40 PM
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CAN: A stock that I have under watch..... VersaBank [TSX:VB] with a reasonable share price of $7.48/share. I have come across a sort of banking stock for a company called VersaBank....here is a company description VersaBank is a Canadian based bank operating in the financial sector. It operates using an electronic branchless model and sources deposits, consumer loans, commercial loans and leases electronically. It has two primary business activities: the acquisition of deposits and the granting or acquisition of loans. It is a member of Canada Deposit Insurance Corporation (CDIC). VersaBank's portfolio is administered by two divisions, namely commercial banking and structured finance. Its commercial banking division specializes in making commercial loans and mortgages whereas, its structured finance division operates its Bulk Purchase Program which involves purchasing loan and lease receivables from non-bank and fintech financiers. I checked out its financials ...... VersaBank financials and found a pretty stable Total Revenue of about $13.5M/quarter with a Net Revenue of about $5M and on an annual basis the income has bee slowly increasing from $35M to $54M over 5 years On an annual basis there has been ZERO Current debt over the past 5 years. The long term debt over the same time started at $14M but over the last 5 years it has been lessened to ZERO as well on a quarterly basis. I find that very attractive. Here are my charts for P&F and Trigger You can see by the red numbers in the right axis of the P&F Chart that the share price is right in the middle of that support. Hopefully that support holds and the price rises again to attack the resistance band. The Column SMA's are beautiful and bullish. This company is only 6 years old so it is just now really getting established... It has a tiny quarterly dividend started which is really not of concern... a purchase of this stock would be for its capital gain. The Trigger chart is interesting... You can see several instances of false breakouts....they happen in the middle of a run ....not the start.... the good news is that when the price falls back it only falls to the 20 day SMA....which it has recently done. The Slow sto is encouraging as it is starting to rise again... we want the MACD to follow suit very soon. The BBwidth has fallen to a point where it can suddenly rise any day now.... we want the MACD to lead the way here now and the Slow sto continue to 80. These are not bad charts...especially the DI +/- in the Sentiment chart which is bullish for a while and I think the two lines will diverge again.. All else is normal . The Ichimoku chart looks great. The share price is high above the clouds.... the only bearish indicator is the CMF but that is rapidly going to green. Conclusion This is not the time to buy IMHO because the price can slip under the support shown in the P&F chart. If you are a risk taker you can take a chance and put a limit stop loss to protect yourself. But for the sake of a few pennies I would rather wait. We are close to heading for an all time high for this stock... if it breaches this mark it will probably be in for a good ride. patience...it is a virtue. UE

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