Insights for May 2016

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Marks and Spenser announced its fiscal 2016 results on 25th May and the stock crashed by nearly 10% intraday, post the announcement of the results. The investor sentiments surely got dampened post the retail giant announced its yearly financial results. This might be because, M&S new boss, Steve Rowe warned that profits might take a hit in short term under a turnaround plan to slash clothing prices and put more staff in stores. Mr. Rowe also admitted that there is no instant solution to revive its beleaguered clothing arm. However, Mr. Rowe also said that he would cut everyday prices for almost one third of its clothing ranges, while reducing promotion and clearance sales. M &S has been trading below its 20 DMA, 50 DMA and 100 DMA of 424p, 423p and 422p respectively. The stock finished trading on London stock exchange at 392 p on Thursday, 26th May. However, the stock may start consolidating at 392 p as the stock has taken support at 392 p in the past and has bounced back from those levels. In case, the retail giant couldn’t sustain even at 392p, it might head for a new 52 week low. Based on earnings estimates for the company's fiscal year ending in march 2018, the stock has a price-to-earnings ratio of 19.5 which is quite high compared to FTSE100 12 month forward P/E of 13.37. The analysis of forward price to earnings of M&S also indicates that the stock is pretty overvalued.

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Topics: Analysis
Other Insights on Related Shares: MKS.L

Vodafone Plc is a ‘Hold’ at the current price levels and we really don’t see much upside in the stock. The company’s latest fiscal 2016 results were also in line with the management guidance as the company reported fiscal 2016 EBITDA at £11.9 bn, which was on the upper side of the management guidance of £11.7-£12.0 bn . However, in terms of technical analysis, the chart has turned ‘bearish’ as the technical indicators indicate short term weakness in the stock. It has formed a ‘shooting star’ and ‘Bearish engulfing pattern’ in the last 3 trading sessions, and in case the stock breaks below yesterday’s low of 225.40p, we might see stock heading towards 215pence in the coming trading sessions. Although once the stock hits 215 pence, it might start consolidating and thereafter can trade in the range of 215p-232p. Hence, traders carefully need to watch these levels and hedge their trading positions with appropriate stop loss. Currently, the stock has been trading above its 20DMA, 50DMA and 100DMA of 223p, 222p and 219p respectively. The stock finished trading on the London Stock exchange at 225 p on Thursday, 19th May. . Based on earnings estimates for the company's fiscal year ending in march 2018, the stock has a price-to-earnings ratio of 27.79 which is quite high compared to FTSE100 12 month forward P/E of 13.37. The analysis of forward price to earnings of Vodafone Plc also indicates that the stock is pretty overvalued.

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Topics: Analysis
Other Insights on Related Shares: VOD.L
Related Shares: Vodafone Share Price

Compass, a British company providing catering services to a wide range of businesses and public and private organisations has reported its first half earnings for 2016. Revenue is growing: the year's first half revenue was £9.7 million, up 5.8% from last year, with operating profits of £735 million, an increase of 6.4%. The underlying operating margin displayed a growth of 7.5%, also up from last year's 7.2%. (Read more)

Other Insights on Related Shares: CPG.L

Centrica Plc:

In terms of technical analysis, Centrica Plc chart has turned pretty bearish, indicating that bears are in charge, outweighing the bulls. The stock had a resistance at 240 pence twice and couldn’t cross the 240p level. On 5th May, it had given a ‘Gap’ down and even continued falling afterwards. The stock also went below its 20 day, 50 day and 100 day moving average of 225p, 226p and 215p respectively. It finished trading on London Stock exchange on 13th May at 202 p a share. In the near term, the stock would be having immediate support at 196 pence and it may start consolidating around 196 pence. However, the immediate resistance for the stock would be 208 pence. If the stock manages to break the resistance of 208 pence, then we would see Centrica Plc trading in the range of 208p-223p. Therefore, the traders need to watch these levels and hedge their positions respectively. (Read more)

Topics: Analysis
Other Insights on Related Shares: BP..L, CNA.L

Shire PLC, the Dublin-based pharmaceutical company at the centre of the controversial merger with Astrazeneca which fell through earlier this year, has announced its 2016 quarterly results which beat analysts' estimates. Pharmaceuticals have grown more and more appealing as prospective equity investments for investors given the growth potential of healthcare products driven by profound global demographic shifts. Sales in the multibillion-dollar global healthcare sector grew by 9.5% in 2015, particularly in emerging markets. (Read more)

LGO Energy plc is a United Kingdom-based company and has a market cap of £11.28 m.  The company is engaged in identifying, acquiring and developing assets within the oil and gas sector. The Company, through its wholly owned subsidiaries, holds interests in two producing fields, Goudron and Icacos, and in a range of petroleum leases. The Company, through its subsidiary, Compania Petrolifera de Sedano (CPS), holds interests in La Lora Production Concession (La Lora), which consists of Ayoluengo producing oilfield and three exploration permits, which include Basconcillos-H, Huermeces and Valderredible, in Northern Spain. The Company also holds a range of petroleum leases, which totals approximately 1,750 acres in the Cedros Peninsula. Its subsidiaries include Goudron E&P Limited, Leni Trinidad Limited (LTL), Leni Gas & Oil Holdings Ltd, Leni Gas & Oil Investments Ltd, LGO Trinidad Holdings Limited and Columbus Energy Services Ltd, among others.

LGO energy has traded in a wide range between 0.14p-4.20p over the past one year. Currently the stock is trading 100% above its 52 weeks low and 93% below its 52 weeks high. The stock finished trading on London stock exchange at 0.290p a share, on Tuesday, 3rd May. In  terms of technical outlook, LGO energy is trading below its 50day moving average and above its 20 day moving average and 100 day moving average of 0.291p and 0.2825p and 0.270p ,respectively.The immediate resistance level for the stock seems at its 50 DMA at 0.291 p and the next resistance level would be 0.325p. Any breakout above 0.325 p may take stock to new highs and any breakdown below its 20 DMA ie 0.27p may take stock to fresh lows. The traders need to watch the stock price levels between 0.27p -0.325p and hedge their positions respectively. Currently, the stock is trading right at its 20 DMA which is providing support to the stock. (Read more)

Topics: Analysis
Other Insights on Related Shares: LGO.L
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