We are well into the Annual General meeting season and here’s one that's getting a big positive response from the market

SAI Global is a spin off from Standards Australia and, among other things provides industry standards and code of practice references as well as assurance and compliance services to companies.

Its shareholders have had a rollercoaster ride in recent times. The stock price jumped sharply a few months ago when SAI announced that it had received an unsolicited bid from private equity groups. The bid came to nothing and the SAI also rejected subsequent offers to buy parts of the company. This all saw the stock price fall 33% from its peak in June.

The company is getting back to basics cutting costs and conducting its own strategic review of divisions and operations. So far so good, yesterday SAI announced solid EBITDA gains for its info services and assurance divisions in the September quarter. This news was greeted by a gain of more than 6% in SAI’s share price and a strong gap through the 20 day moving average yesterday. Technically, it’s not hard to imagine a retracement back to at least the 38.2% Fibonacci level at $4.06 or potentially the 61.8% level and 200 day moving average around $4.40.

SAI Global

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