Insights for August 2016

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SIG Plc

SIG plc is a United Kingdom-based distributor of building products in Europe. The Company is engaged in the supply of specialist products to construction and related markets. It operates in two segments: UK & Ireland and Mainland Europe. It focuses its activities into approximately three product sectors: Insulation and Energy Management; Exteriors, and Interiors. It supplies insulation products in Europe, which include structural insulation, technical insulation, construction accessories, fixings and dry lining. It supplies roofing products in the United Kingdom, which include tiles, slates, membranes and battens for pitched roofs; single-ply flat roofing systems; plastic building products, including fascias, soffits and guttering, and room-in-roof panel systems. It supplies interior fit out products in Europe, which include dry lining, doorsets, floor coverings and washrooms. Its subsidiaries include SIG Finance Limited, SIG Dormant Number 4 Limited and SIG Fixings Limited. (Read more)

Topics: Analysis
Other Insights on Related Shares: GMS.L, SHI.L

Rolls Royce is a ‘Buy” at the current price level as the stock has been rallying non-stop for past 2 months. Any dip in the prices of Rolls Royce is an opportunity to buy for a long term investor or short term trader. On 28th July 2016, the company announced its half yearly results and the stock had surged by over 12% intraday, indicating that the results surely cheered the sentiments of investors. The company’s chief executive, Warren East, commented on the first half results of Rolls Royce, “In the first half of 2016Rolls-Royce performed broadly in line with expectations, delivering a result a little better than breakeven; and the outlook for the rest of the year remains unchanged. Order intake has been good and, although known headwinds constrained revenue and profit in the first half, the business remains well positioned to deliver a solid second half performance supported by growth in engine deliveries, stronger aftermarket revenues and incremental benefits from our ongoing restructuring programmes.”

The stock finished trading on London stock exchange at 786p on Monday, 22nd August. The stock has been trading above its 20 DMA, 50 DMA and 100 DMA of 780p, 729p and 687p respectively. The immediate resistance for the stock is at 831p and support lies at 760p respectively. The stock has been trading in the channel of 751p-831p for last many trading sessions. In case, stock breaches the level of 831p that would ensure new highs for the stock. For the time being, it seems the stock might correct a bit and after correcting it would start consolidating and would again bounce back. Any correction in Rolla Royce is nothing but an opportunity to buy. (Read more)

Topics: Analysis
Other Insights on Related Shares: RR..L
Related Shares: Rolls-royce Share Price

Stock investors are generally buoyed by the news of the impending merger of a quoted company, and its share value will rise following the announcement. But other times the opposite is true: this is what happened with William Hill (WMH.L) after the decision to walk away from the proposed three-way deal with betting companies 888 holdings and Rank. The two latter companies had each put in an offer worth over £3bn, but it was eventually turned down by the William Hill board, despite the two suitors raising its offer to 352p, up from the 339p indicated in the original proposal. This merger could have created the biggest online gambling operator in the UK, following a trend of consolidation in the industry. William Hill rejected the bid because it believed it was “substantially undervalued” and concluded that it would focus on its own strategy to deliver continuing value to shareholders.

  (Read more)

Other Insights on Related Shares: WMH.L

Premier oil plc:

The technical chart of premier oil Plc suggests that the stock might head for a downward correction in the coming trading sessions. The stock finished trading on London stock exchange at 63 GBP a share on Wednesday, 10th August. Currently, the stock has been trading below its 20DMA, 50DMA and 100 DMA of 64.68p, 68.4p and 64.5 p respectively. Two or three trading sessions back, it also formed ‘Doji’ Japanese candlestick pattern and the next day, the stock even went below previous day’s low also which confirmed the short term bearishness pattern of the stock. In case the bearishness continues, we may see stock heading towards the level of 52 p as well. However, if it tests 52p, the stock may start consolidating as well from that level. Therefore, the coming 2 or 3 trading sessions would definitely throw light on the pattern of the stock. Prior to this, the stock has been trading in the channel of 64p-76p for quite some time and a few trading sessions back it has broken that channel as well. Thus, traders should watch the levels carefully and accordingly hedge their positions as well. (Read more)

Centrica is a ‘Hold’ at the current levels.  Although the Stock has gone through a small correction in the last 3 to 4 trading sessions, but we still see Centrica as ‘Hold’. Centrica announced its half yearly 2016 results last week but management looked happy with the company’s performance despite challenging macro environment. 

The Centrica CEO, Iain Conn commented on the results “The first half of the year has been demanding for Centrica, but the response has been strong and I am encouraged by the progress we have made.  We are delivering underlying performance improvement and are building a robust platform for customer-focused growth.  I remain confident in our ability to deliver both attractive returns and underlying cash flow growth, as we continue to implement our strategy” (Read more)

Topics: Analysis
Other Insights on Related Shares: CNA.L
Related Shares: Centrica Plc Share Price
Posted by MaxMarioni on 7 August 2016, 7:25 PM

Premier Oil, Winners from Brexit Aftermath

It is hard to find companies able to reap a profit in the current economic climate, however Premier oil (PMO:LN) is an exception. The British oil company, which has a recently reported a (Read more)

Other Insights on Related Shares: PMO.L
Related Shares: Premier Oil Share Price