Marks and Spenser is an avoid at the current levels as the valuation also shows that the company is fairly priced at the current level. The stock finished trading on the London stock exchange at 291p on 10th September, down by 0.78% compared to the last close. The stock has been trading below 20 DMA (Day moving average), 50 DMA and 100 DMA of 299p, 305p and 292p respectively. Trading below the short term moving averages generally doesn’t go well with the bulls! In terms of technical analysis or charting also, the stock is forming head and shoulders pattern and in case the stocks goes below 290p, it may see a retest of lows of 260-270. Therefore traders or investors shall avoid initiating any long in the company till we see any signs of consolidation or up move. The immediate support and resistance lies at 288p and 299p respectively. Traders or investors would be advised to keep an eye at the respective levels and accordingly hedge the positions.
As per the company’s FY’18 results, the company reported a flat growth in revenue of 0.7% year on year. The retail giant’s profit before tax and after adjusting the non-recurring items was down by 5.4% year on year because of the decrease in food gross margin. Nonrecurring items of £514.1m included £321.1m for company’s UK store estate closure programme. As per the management guidance, cash costs of transformation remain in line with plan. However, the good news for the investors is that the company’s net debt has reduced significantly by £107.2m. (Read more)
Vodafone Plc. is a avoid at the current price. The stock finished trading on the London stock exchange on 19th July at 175.0p a share, down by 1.27%. In terms of technical analysis or charting, the stock has been nonstop making lower highs and lower lows and also has been trading on the downward trend line which further confirms the bearish sentiment of the telecom major. Currently, the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 183.7p, 189.2p and 196.6 p respectively. Considering the free-fall of the stock, it doesn’t look like that stock will be taking support anytime soon in the coming days and we expect the free-fall to continue. Hence, traders or investors would be strictly advice to stay away from the stock as consolidation doesn’t look like soon.
Rolls Royce looks like an avoid at the current levels. The stock finished trading on the London stock exchange at 846p a share on 24th may. Currently, the stock has been trading below its 50 day moving average (DMA), 100 DMA and slightly above 20 DMA of 860p, 858p and 841p respectively. In terms of charting or technical analysis too, the stock has been forming a downward trend line on the daily charts which further confirms the bearish trend of the stock. However, we expect the downside to continue and traders should avoid initiating any fresh long positions in the stock. The immediate support and resistance for the stock lies at 830p and 870p respectively.
Let’s throw some light on the latest financial results of the company. The company’s chief executive Mr. Warren East commented on the results, “Rolls-Royce made good progress in 2017. Financial results were ahead of our expectations and we achieved a number of important operational and technological milestones, but were impacted by the increasing cost and challenge of managing significant in-service engine issues. The business unit simplification and restructuring programme that we announced this January will drive further rationalisation and is a fundamental step in the journey started two years ago to bring Rolls-Royce closer to its full potential both operationally and financially. We are encouraged by the improving financial performance in 2017 with growing revenues contributing to improved profitability and cash generation. Looking forward, sustaining this improvement and delivering increasing cash flow generation will strengthen our position as one of the world’s leading industrial technology companies” (Read more)
Centrica Plc. is an avoid at the current price level as the stock still looks like in a correction mode. The stock finished trading at 133p a share on the London stock exchange, up by 0.38% compared to the previous close. In terms of technical terms or charting, the stock still looks a little weak and we expect the downside correction to continue for some time. On a daily chart, the stock has formed a triple top pattern which indicates that the upside is restricted and the stock has a more room for downside. The momentum oscillator crossover also indicates the bearishness of the stock. The immediate support and resistance for the stock lies at 124p and 147p respectively. A move above 147p can indicates some upmove in the stock. However, a break below 124p can take down the stock to even lower levels. Therefore traders or investors would be advised to keep an eye at the respective levels and accordingly initiate their positions.
Let’s throw some light on the latest financial results of the company announced on 22nd Feb 2018. As per the results, the company’s adjusted operating profit was down by 17% because of reduced profit in Centrica business. Adjusted earnings were also down by 22% on account of high net finance cost. However, the good news for the investors is that the net debt had come down by £877m to £2.6bn, which is at the lower end of the company’s target. (Read more)
Bp looks fairly priced at the current price level as we don’t see much upside into it. The stock finished trading on the London Stock exchange at 472p a share, down by 0.7% compared to the previous close. Lately, the stock has had a good correction and has corrected from the highs of 530p to the lows of 470p. Currently, the stock has been trading below its 20 DMA (20 day moving average), 50 DMA and 100 DMA of 486p, 505p and 501p respectively which also confirms the bearish trend of the stock. The immediate support for the stock lies at 466p and any breakdown below that can push the stock to the lower levels. However to resume the fresh uptrend, the stock has to surpass the resistance of 500p. Therefore, we would advise the traders or investors to avoid the stock for the time being and fresh long positions should be formed only when the stock has bottomed out at 465-466p.
Let’s throw some light on the latest FY’17 results of the company. The company announced its full year 2017 financial results a few days back on 6th February. The company reported the full year 2017 underlying replacement cost profit at $6.1 billion compared to $2.6 billion in 2016. The company reported a robust profit of $3.4 billion in the FY’17 versus $115 million in FY’16. The company also recommenced a share buyback programme in the fourth quarter to offset the dilution of the scrip issue and repurchased 51 million ordinary shares at a cost of $343 million. However, the company’s net debt has increased to $37.8 billion in FY’17 compared to $35.5 billion in FY’16. The net debt ratio as on 31st December 2017 was at 27% which was also well within the company’s target of 20% to 30%. (Read more)
Sirius Minerals Plc shall be avoided for the time being. The stock finished trading on the London stock exchange at 23.0p on 17th January, down by 0.40% compared to the previous close. The stock has been non stop falling for the past few weeks and it seems that the correction shall continue for the coming days as well. In terms of technical analysis or charting, the stock has been trading firmly on the downward trend line which further confirms the further bearish sentiment of the stock. It has been constantly forming lower highs and higher lows and we don’t see any signs of consolidation soon. Currently, the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 23.0p, 24.4p and 25.2p respectively. The momentum oscillator ie macd also indicates towards the bearishness of the stock. The immediate support and resistance is placed at 22.0p and 25.0p respectively. However, any breakdown below 20.0p may push the stock even lower. Therefore, traders or investors shall be adviced to avoid initiating any fresh long positions in the stock.
The company lately announced the quarterly update on 12th January 2018. As per the update, the project remains on track to deliver the first polyhalite and commercial production on time and on budget. However, current diaphragm walling activities are approximately two months behind the schedule. However, the review of 2017 milestones demonstrates good progres (Read more)
Amid a general slump in retail sales in Britain between December and early January, Primark, the British low-priced high-street retail chain, managed to record a 7% sales growth during the festive season. Shoppers seemed to have snubbed other higher-priced retailer rivals, opting for the discount fashion brand as brexit-induced price squeezes bit deep into their pockets. Primark owner Associated British Foods Plc is benefiting greatly from Primark’s success, and is poised to further expand the fashion brand’s network of 350 stores, after the opening of five new stores last year.
AB Foods CFO John Bason commented that ‘Of the 20 largest retailers, our market-share growth has been the strongest over the last year’, after Primark showed strong trading figures over the sixteen weeks to January the 6th. The main sales growth drivers were the expansion of retail space and the growth in market share, siphoning off sales growth from rival fashion stores. The discount fashion store’s performance in Europe, though, was mixed, as Primark sales suffered from the unseasonal good weather in October. (Read more)
Aston Martin has been holding preliminary talks with financial advisers about a potential initial public offering of the British premium automotive brand. The manufacturer is said to be targeting valuation of up to GBP 5 billion, and would naturally choose London to float its shares. The valuation is only a preliminary estimate, and no final decision has been made regarding potential financial advisers. (Read more)
The year ahead on the stock market is likely to continue in the same way as 2017, characterised mainly by one thing, and one thing only: Brexit. Many, if not all the questions relating to Britain’s future economic and market landscape stem from this issue. Will the government be able to secure that-all important deal with the EU to preserve some kind of access to the single market and begin the trade negotiations proper? Or will it all fall apart and Britain will crash out with no deal? Will this spell the end of Theresa May’s reign and will Jeremy Corbyn climb the stairs into No. 10? How will pound sterling be impacted by all this? Will companies in the City resort to contingency plans and relocate offices to Europe en masse? And, will the stock market index soar as a result of favourable negotiations, or crash out following a breakdown in talks? (Read more)
National Grid Plc. is an avoid at the current price. The stock has been nonstop falling for the past few weeks. The stock finished trading on the London stock exchange at 864p a share, up by 0.58% compared to the previous close. Currently the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 870p, 880p and 894p respectively. In terms of technical analysis or charting, it seems that the stock would continue to correct more and the downfall shall continue as the stock has been trading on the downward trend line. The momentum oscillators are also pointing out towards the weakness in the coming trading sessions. Therefore, we would advise traders or investors to avoid national grid for the time being.
Let’s throw some light on the half yearly 2018 results of the company. As per the results, the company reported the adjusted operating profit at £1,368m in H1’18 versus £ 1,318m in H1’17. The company’s capital investment has increased to £2bn for the first six months of the year, reflecting significant investment in developing and maintaining gas and electricity infrastructure. Also, the US regulated business continued to make good progress as well. (Read more)