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The New Breakout Pick Is…
Alexandria Advantage Warranty Co. (symbol: AAWC)
Good Evening,
With all the trouble occurring with major car makers like VW it is becoming more important for car owners to have third-party warranties. Our latest pick is AAWC, a company that provides such warranties.
AAWC has managed some impressive growth since starting in 2008 and the company now markets its warranty products to around 80 dealerships in the greater metropolitan Washington DC area.
Back in July AAWC signed a LOI to merge with a nationwide franchisor of automotive services and repair centers. In a subsequent corporate update AAWC said that it had also finalized financing as part of the deal.
You are hearing about AAWC right now from us because the company has come into play technically. Volatility has been the lead trumpet here, with volume levels skyrocketing to unbelievable levels.
Most importantly, AAWC is trading at a very accessible entry level and with strong historical highs; we believe the play is a strong undervalued opportunity.
Start your research now.
Check Out These Key Short Term Technicals
AAWC has seen a virtual explosion in daily volatility. Average volume as a consequence is now up to 1.4 million shares.
AAWC is trading at 46 RSI which suggests strong undervaluation and a solid bounce opportunity for traders.
AAWC is also trading on an uptrend. Valuation has surpassed the 50 DMA of .0029.
AAWC is still however trading below the 200 DMA which suggests that there is still a solid amount of upside opportunity on the table.
AAWC recently set a higher high, reaching .0105 on volume of 6 million shares for around 6% intraday gains.
Record 2015 US Auto Sales – Says GM
The U.S. auto industry is on track for a record year of annual sales, General Motors Co. said on Tuesday, as the top U.S. automaker and its rivals reported October sales that far exceeded expectations.
GM said the six-month rolling average for U.S. auto sales is 17.8 million vehicles on an annualized basis, which means the industry is on its way to beating the 1999 annual sales record.
October sales will come in around 18.2 million vehicles on an annualized basis, their highest level since 2001, when automakers offered zero percent financing in the aftermath of the Sept. 11 attacks, the company said.
In 2009, at the depth of the Great Recession, U.S. auto sales dipped to 10.4 million vehicles.
Analysts had forecasted October sales to be 8 to 12 percent higher than last year. A Reuters poll of 45 economists showed expectations of a seasonally adjusted annualized sales rate of 17.7 million vehicles for last month.
"October was a huge month for the industry, smashing expectations and continuing its hot streak," said Bill Fay, Toyota's U.S. general manager.
Big Catalysts for AAWC
AAWC is poised to capitalize on strong end-of-year auto sales in the US.
Current valuation is within striking distance of resistance and offers strong upside potential.
AAWC is seeing a strong rise in daily volatility. This signals strong investor interest.
Put your plan together for trading AAWC right away.
Able Trader
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