Westminster Group: Above natural 10p support targets back towards 20p plus

Given that some commentators believe we are on the edge of WWIII, this is a good time to look at a share which appears to be operationally geared to deal with security and terror prevention.

Clearly, in the present geopolitical climate and with the clash of cultures in full force, a priority is to make everyone as secure as possible. This ties in very well with the business model of Westminster Group Plc (WSG), a company which appears to have many key bases covered as far as  airport security space in West Africa. We were assured on this situation in the wake of the late February update from the group which highlighted the prospect of year on year revenue growth as much as 22% with the prospect of reaching breakeven point, taking into account EBITDA.

Looking at the charting picture it can be seen how over the past couple of years the stock has been attempting to build a base towards 10p. Indeed, apart from an obvious bear trap / island gap reversal in May last year, 10p has been the natural floor for the stock.

On this basis, provided there is no weekly close back below 10p, one would be looking for considerable upside. The favoured destination over the next 1-2 months is back towards 20p – also the area of the 200 day moving average.