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Prime Markets in the Press - Thomas Cook Group (TCG)

25/11/2010

Shares in Thomas Cook Group (TCG.L) gain 1.9 percent, outperforming a 0.7 percent advance by the FTSE 250 .FTMC index, as Europe's second-largest tour operator agrees to take a 50.1 percent stake in Russian travel agency Intourist.

Thomas Cook will invest up to $45 million, made up of $10 million in cash and $35 million in Thomas Cook shares, in the Russian joint venture.

"The tide it seems is turning for Thomas Cook with the landmark deal today, which adds a new dimension to the group and fully exposes it to immense emerging markets growth potential," says Richard Curr, head of dealing at CFD specialists Prime Markets.

"With (Thomas Cook) shares in upswing ahead of the results on December 1, Prime Markets believe now is the right time to add Thomas Cook to the portfolio for recovery in its existing markets and to benefit from the potential offered by the VAO Intourist deal," Curr adds.

The technical picture also supports the fundamentals, with the shares having recently moved to the top of the July price channel, and are now level with converging 20 and 100-day moving averages, Curr says.

"Provided the price action remains above this level, there is a strong possibility a golden cross technical feature will form, and based on this we would expect the shares to push initially to July upper resistance at 212 pence," Curr adds.

Reuters

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