Insights for October 2016

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The owner of British Airways, International Airlines Group (IAG), is the giant of European skies, born from the merger of Iberia and British Airways: its portfolio includes Aer Llingus and Vueling as well. This aviation behemoth has announced it is suffering from the sterling depreciation induced by the Brexit vote, and has launched a new profit warning. The group reports its earnings in Euro but the majority of its revenue is generated through British Airways, and hence its income is mainly in sterling. The London-based company forecasts that it will end the fiscal year with an anticipated operating profit of about 2.5 billion Euros ($2.7 billion), an increase of about 7% from the 2.34 % reported last year. (Read more)

Other Insights on Related Shares: IAG.L

Sirius Minerals is Hold at the current levels. The stock finished trading on the London Stock exchange at 34.6p a share on 24th October, up by 1.48% compared to one day before. Currently the stock has been trading below 50 DMA, but just a tad above 20 DMA and 100 DMA of 37.0p, 33.6p and 29.0p respectively. In terms of technical analysis, the stock has made a slight bullish candlestick pattern called as ‘Hammer’, and the stock has witnessed a positive closing yesterday, so it might head for another breakout as well! Lately, the stock has had support at 30p as it seems stock has bounced back after taking support at 30p. The next resistance levels for the stock would be at 35p and 37p respectively. Any breakout above 37p would ensure the rally back in Sirius Minerals plc and we may see stock touching back to 50p level as well. However, there might be a few hurdles in terms of resistance levels, but in case it breaches resistance of 35p-37p, then even fresh longs can be initiated in the stock with the target of 50p and stop loss of 30p. The company has been seen correcting since August 2016 and has come down from 45p to 30p. However, it seems that the Sirius is in a consolidation mode and is ready to bounce back very soon! I would like to invest traders and investors to keep a close eye at the stock and should not miss the lucrative investment opportunity.

(Read more)

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

Eland oil and gas:

Eland Oil and gas plc have had a spectacular rally and the stock also made a high of 48p a share, 3 days back on 17th October. However, post that day, the stock seems in a correction mode and has come down from 48p to 41p in the last 3 trading sessions! The stock finished trading on the London Stock exchange at 41p a share on 20th October 2016. Currently, the stock has been trading above its 20 DMA, 50DMA and 100 DMA of 40.8p, 35.09p and 30.5p respectively. Therefore, 100DMA should likely to be a support zone for the stock and the stock might consolidate and would bounce back again. But, if it couldn’t sustain 40p as well, then a breakdown up to 35p cannot be ruled out. Thus, traders and investors are advised to keep an eye on the levels of the stock and should initiate fresh longs only if it starts bouncing back above 40p or else it’s better to avoid the stock at least for the time being. Any bounce back above 40p can take the stock back to its recent high of 48p which might again act as a resistance for the oil giant! (Read more)

Topics: Analysis
Other Insights on Related Shares: BWY.L, ELA.L

Solo oil should be a compelling ‘Sell’’ or should be avoided for the time being. The company announced its half yearly result, last month on 14th September. The chairman’s statement on the results is as follows:

“The Company has continued to advance its portfolio of oil and gas investments in the first half of 2016 with several major milestones occurring in that period; most significantly the signing of a gas sales agreement for Kiliwani North in Tanzania in January followed in April by first gas from the project, and the successful testing of the Horse Hill oil discovery in the UK providing considerable support to the concept of a commercial discovery.  Whilst market conditions remain somewhat volatile and uncertain the Company has taken prudent measures to cut costs and to focus on the existing core assets in Tanzania and the UK” (Read more)

Topics: Analysis
Other Insights on Related Shares: SOLO.L
Related Shares: Solo Oil Share Price

Tesco Plc is a ‘Hold’ at the current price levels, but the stock might also head for a small correction towards downside and will start consolidating then. The company announced its half yearly 2017 results last week, on 5th October 2016.

The company’s CEO, Dave Lewis, commented on the results of the company, “We have made further strong progress in the first half, with positive like-for-like sales growth across all parts of the Group as we re-invest in our customer offer whilst rebuilding profitability in a sustainable way.  The entire Tesco team is focused on serving shoppers a little better every day.  We are more competitive across our offer.  Prices are more than 6% lower than two years ago, availability and service have never been better and our range is more compelling.  Our new fresh food brands are performing ahead of expectations, improving our value proposition and further removing reasons for customers to shop elsewhere.  Whilst the market is uncertain, we have made significant progress against the priorities we set out two years ago, stabilizing the business and positioning us well for the future.  Today, we are sharing the plans we have in place to become even more competitive for our customers, even simpler for colleagues and an even better partner for our suppliers, whilst creating long-term, sustainable value for our shareholders.” (Read more)

Topics: Analysis
Other Insights on Related Shares: TSCO.L
Related Shares: Tesco Share Price
Posted by MaxMarioni on 9 October 2016, 6:15 PM

Brexit Winners and Losers: HSBC and Lloyds

In a week when Pound Sterling touched a 30-year low and by Friday close had fallen by almost 1.5 percent to $1.2434, stock investments provided the only positive notes in a dismal week for the UK's economy. More precisely, the UK stocks have to be divided in two different camps of winners and losers. On the whole, the FTSE 100 index climbed close to a record high on Tuesday, and shares also gained on Friday as stocks recovered from the flash crash. The winners were mainly companies that get a share of their revenues from outside Britain who rallied, carrying the rest of the market and covering for the losses of the losers. Companies operating in some market sectors did better than others: the FTSE 350 Industrial Metals & Mining Index, for example, had its best weekly performance since spring. (Read more)

Posted by MaxMarioni on 9 October 2016, 6:14 PM

Brexit Winners and Losers: HSBC and Lloyds

In a week when Pound Sterling touched a 30-year low and by Friday close had fallen by almost 1.5 percent to $1.2434, stock investments provided the only positive notes in a dismal week for the UK's economy. More precisely, the UK stocks have to be divided in two different camps of winners and losers. On the whole, the FTSE 100 index climbed close to a record high on Tuesday, and shares also gained on Friday as stocks recovered from the flash crash. The winners were mainly companies that get a share of their revenues from outside Britain who rallied, carrying the rest of the market and covering for the losses of the losers. Companies operating in some market sectors did better than others: the FTSE 350 Industrial Metals & Mining Index, for example, had its best weekly performance since spring. (Read more)

BHP Billton:

BHP Billiton plc looks pretty bullish on the charts with huge volume breakout!  The stock finished trading on London stock exchange at 1212p on Thursday 6th October. Currently, the stock has been trading above its 20 DMA , 50 DMA and 100 DMA of 1082p, 1043.9p and 965.9p respectively. A few days back, the stock gave a breakout above 1168p and has started trading in the new channel of 1168p-1240p. Therefore, if the rally sustains, we see the stock touching 1240p very soon. For the last 4 trading days, the stock has been giving positive closing , indicating strong technicals, hinting towards the bullishness of the stock. Two years back, the stock used to trade at 2000p, thus traders or investors need to keep an eye on the levels of the stock as if the rally continues, it may even bounce back to 2000p too. However, any minor correction in the middle of the rally can’t be ruled out either, but that could also be used as another lucrative opportunity to buy the stock. The next resistance for the stock would be 1240p and the support is seen at 1168p . (Read more)

Topics: Analysis
Other Insights on Related Shares: BLT.L, PPC.L

Tullow oil plc:

Tullow Oil Plc looks pretty bullish on the charts. The stock finished trading on London Stock exchange at 259.8p on Wednesday, 5th October.  Currently the stock has been trading above its 20 DMA, 50 DMA and 100 DMA of 230.1p, 223.0p and 230.3 p respectively. The stock has been rallying nonstop for the last 4 trading sessions and has rallied from 240p to 259p in merely four trading days! However, after rallying nonstop, consolidation or a minor correction too couldn’t be ruled out. But, the medium term outlook for the stock would still remain bullish. The next immediate target for the stock is probably seen at 274p , if the stock  breakout above 260p in the coming sessions. Thus, 260 might act as a resistance for the stock but can act as a breakout point as well. However, in case of breakout above 260p succefully, traders or investors can even initiate fresh positions on the stock for the short term target of 275p. The next target for the stock would be 300p. We see the support at 250p and 240 p respectively. (Read more)

Topics: Analysis
Other Insights on Related Shares: AAL.L, TLW.L

It has been referred to as one of the biggest corporate mergers in history, a milestone to set the example for future megadeals of its kind. Worth over $100 billion, the takeover of SAB Miller by rival Anheuser-Busch InBev was finally approved on Wednesday 26th September by a majority of SAB Miller shareholders large enough to officially sanction the deal, after months of complex negotiations. (Read more)

Other Insights on Related Shares: SAB.L
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