Oxford Instruments is already a '10-bagger'. Buying its shares at their nadir in 2009 would have made you a fortune. But don't despair if that wasn't you. Rapid growth in demand for Oxford's high-tech equipment is now backed up by a bullish share price chart formation that suggests there could be much more to come.
- Share price through technical resistance levels
- Nanotechnology market growing fast
- High-tech niche products
- Possible bid target
- Threat of weaker research and development spend
- Exposed to a downturn in China
We are not completely lost to the dark art of technical analysis. However, it is difficult to ignore the convincing case for buying Oxford's shares made by Investors Chronicle's in-house technical analyst, Dominic Picarda (see box). What's more, the fundamentals of Oxford's business are sound. A big increase in profit margins helped underlying profits surge by three-quarters in the first half of 2011-12 and City analysts expect further rapid growth in earnings in the coming years.