In our June 12, 2016 posting titled “Ritchie Brother: Inflection Point?” we said the following:
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“…it appears that [Ritchie Brothers] RBA is at a threshold that has not been exceeded since early 2011”
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“…the stock could rise to $48.00.”
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the stock needs “…some kind of reprieve from the most recent parabolic move in the price”
Since June 2016, RBA has managed to trace out the following price action (in red):
As the last bullet point indicated and the price chart has reflected, the parabolic move was resolved with a decline to the recent low of $27.27. Unfortunately, we now need another parabolic move from $27.27 to the recent jump above $35 to be resolved in some way or another.
Another item that was pointed out was the possibility that RBA could exceed a level in Edson Gould’s Altimeter, a level that had not been exceeded since 2011. The recent price action since June 2016 has allowed this to occur as well.
We’re still thinking that the rise to $48 is possible. The recent news of the acquisition by RBA of IronPlanet makes it more possible to hit our target. However, the recent price activity of going from $27 to $35 overnight based on an acquisition simply means that achieving the $48 target will take more time than we had anticipated.