I was just looking at the charts of GAEL. This is a 10 yrs chart and here is what I see.
1. in 2003 Split adjusted GAEL was quoting at 1.8-5 per share. Right now the stock is quoting at Rs 23.5 which would mean GAEL on a 8 yrs period has multiplied wealth 13.05 to 4.7 times ie a return of 1305% (if invested at Rs 1.8) or a more modest 470% return (if invested at Rs 5 per share).. Anyway we look at it GAEL has given us great returns if we stick with the company on a long term basis.
2. GAEL Stock has been technically forming a higher bottom and there is a strong support at 22.35 level.
3. The stock has consolidated long term and will be a strong buy if it crosses 30 we will have some resistance at 40 and then its all open blue skies. The sky is the limit as they say.
Conclusion:
I have never really looked at the technical charts but come to think of it 2012 looks all set to be an exceptional year for GAEL technically and with the new Maize Derivatives plant it all looks like the stars are getting aligned. Also long term the company has delivered. We know GAEL is a consistent dividend paying company with conservative management with eyes set at "Maize Derivatives" business as the money spinner.
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