Today we are recommending a new position in Catapult (CAT) a technology software company that provides performance measurement gear for athletes and video tracking and analysis software to over 3,300 professional sports teams globally.
If you have watched any major sporting code in Australia or globally you have noticed that all players have sewn into jerseys GPS tracking devices. This is what Catapult provides but it is much more they provide software that tracks
- Distance and Speed
- Acceleration and Deceleration
- Positioning and Movement patterns
- Heart rate
In a competitive sporting environment where seconds or millimeters matter having Catapult to track your player’s performance can make the difference between winning and losing. So the software is a vital part of any high-performance sporting team.
The company has had a volatile history and like many companies has transitioned to a fully recurring revenue model. The company has forecast continued growth of 20% pa for the next few years.
We feel comfortable recommending a position at current levels.
The Technicals
- CAT is closing in on a $2.00 buy point area from a 3 year cup base
- Shares rose to test this $2.00 buy area at the beginning of June, and have since consolidated over the past 5 weeks
- Above average volume over the last 5 weeks has also been a positive during this consolidation phase
- Early entries for aggressive investors could have been had from the 3rd touch off that rising trend line
- Still, the current pattern is within a second stage meaning that CAT should have more room to run upon any breakout
- When compared to the All Ords (top 500 companies) CAT is amongst the top 20% best performing gainers over the last 6 months
CAT has also outperformed the ASX 200 by:
- 90% over the past year
- 30% over the last 6 months
- 7% over the last 3 months &
- 2.5% over the last month
TRADE ACTION
Number of shares: 2,000
Entry: Buy up to $1.85
Stop Loss: $1.60
Target: No Target
