Midas Group (MDS)

Company

"Midas is one of the world's largest providers of automotive service, offering brake, maintenance, tires, exhaust, steering and suspension services at more than 2,400 franchised, licensed and company-owned Midas shops in 15 countries, including nearly 1,650 in the United States and Canada. Midas also owns the SpeeDee Oil Change business, with 170 auto service centers in the United States and Mexico." (company website)

mds(4-1)
MDS 4-month chart
mds(4-1)_1yr
MDS 1-year chart

Buy

Buy 500 @ $8.50.

Midas continued to fall after disappointing earnings at the end of October, but it surged again in early December on news that it had extended its credit facility. Since then it has broken above the falling 50-day moving average and shows signs of recovery.

  • Percentage price oscillator (PPO) — diverging above the signal line even more after breaking above the 50-day MA
  • Volume — increasing slightly

Based on technical analysis, MarketEdge calls MDS an "avoid," but notes that the chart shows "mild improvement" and a "possible trend reversal."

Sell

gain Bottom line
1%

Sell 500 @ $8.65.

Midas hasn't done much of anything since I bought, although it has closed above my buy price every day this week. Nevertheless, the PPO line is starting to converge back toward the signal line, and I have to conclude that I missed an optimal buy point and bought too late to get much out of this up-cycle.