Insights for April 2017

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Eland Oil and Gas Plc. is a promising ‘Buy’ at the current price level as the technical analysis or charting indicates short term bullishness of the stock. The stock finished trading on the London stock exchange at 57p a share, down by over 2% compared to the previous close. A day back stock made a bullish pattern called as marubozu on the daily charts which indicates that bullishness shall likely to continue. However, stock did give a negative closing but we expect it as a consolidation move only. Currently the stock has been trading above its 20 DMA, 50 DMA and 1000 DMA of 52p, 50p and 46p respectively. The immediate support and resistance for the stock lies at 56p and 62p respectively. Therefore, breakout is confirmed only if the stock breaches 62p successfully. In case of breakout, the stock would be making fresh new highs. Thus, traders need to keep a close watch at the respective levels and accordingly hedge their positions. As per the weekly charts, the medium term target of the stock could be 75p – 80p. The weekly chart indicates the formation of ‘rounding top’ formation, a bullish pattern which again indicates towards a target of around 80p.

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

Consumer retail, a cornerstone of the British economy, appears to be slowing down, according to several indicators. The volume of goods sold by British retailers, both in store and online, fell in April by 1.4% compared with the figures recorded three months before. According to the Office for National Statistics (ONS), this is the biggest decline since 2010, when the economy was experiencing a strong but short-lived rebound from the recession induced by the financial crisis. Just last month, sales fell by 1.8%, 0.7% more than what most analysts had predicted. Sales of clothing and footwear fell by almost 1%, with all kinds of retailers except for department stores reporting a loss. (Read more)

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Posted by ShrutiAggarwal on 20 April 2017, 8:05 AM

Tesco Plc, a hold at the current levels

Tesco Plc. is a ‘Hold' at the current levels, but the stock has been going through deep correction and shall start consolidating soon. We believe that short selling of a fundamentally strong company like Tesco plc. is short lived. Therefore, once the stock is done with its correction and has consolidated then even fresh longs can be initiated, but at a particular price. The stock finished trading on the London Stock exchange at 176.2 p a share on 18th April, down by almost 3%. Currently, the stock has been trading below its 20 DMA, 50 DMA and 100 DMA of 187p, 190p and 197p respectively. In terms of technical analysis, for the last 4 days the stock has been forming red marabozu candles which indicate that stock would continue to come down for some more time.  The immediate support lies at 170p and in case the stock is not able to sustain the support of 170p, then it may test even the lows of 150p. However, we expect the stock to consolidate in the range of 150p to 170p. However long term of view of the stock is bullish only, considering its strong financial matrix and fundamentals.

The company announced its full year 2017 financial results on 12th April 2017 . Let’s throw light on the latest financial results of the company. The company’s topline was up by 4% YOY as it reported FY’17 revenue at £49.9bn versus £47.9bn in 2016. As per the management, the company also witnessed positive volume growth both in UK and ROI and international. However, the good news for the investors is that the net debt is down by 17% as the company repaid debt of £1.9bn within the year. Also the operating profit excluding non-recurring items was up by 30% to £1,280m versus £1,280m in 2016. Cost savings of £226m have already been achieved with £1.5bn being medium term target and yearly target of £455m. (Read more)

Topics: Analysis

Sirius Minerals Plc. is a compelling ‘Buy’ at the current price levels. In terms of technical analysis, it seems that the stock has already given a breakout and is all set to rise. The stock finished trading on the London Stock exchange on 12th April 2017, at 25p a share, up by 8% compared to previous close. The stock has had risen by over 20% in the past 2 weeks. However, we feel that the rally shall continue and even at the current levels, investors can initiate fresh longs. Currently, the stock has been trading above its 20 day moving average (DMA), 50 DMA and 100 DMA of 19.9p, 18.8p and 19p respectively. Trading above the moving averages is also a bullish sign for the stock. The immediate support and resistance for the stock lies at 20p and 26p respectively. The stock needs to pierce 26p to continue the rally. However, a breakout above 26p could take stock to the new highs of 34p. Hence, Traders shall keep a close watch at the respective levels and accordingly hedge their positions. In terms of charting or technical analysis, it has been making green marubozu candles which also indicates short term to medium term bullishness of the stock. Also it seems the stock would be making ‘Rounding top bottom” pattern, which also confirms the uptrend.

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

Solo Oil is a ‘Buy’ at the current price levels as the stock has had corrected quite a lot after the spectacular rally. Therefore, in terms of valuations, it looks slightly underpriced. The stock finished trading on the London Stock exchange at 0.97p a share, up by 0.97% compared to the previous closing. Currently, the stock has been trading below its 20 day moving average (DMA), 50 DMA and above 100 DMA of 0.53p, 0.58p and 0.450p respectively. A few months back, the stock has had a spectacular rally and has even gone up to 0.89p but couldn’t sustain it and have been correcting after making a high of 0.89p. However, the technical analysis indicates that now the stock would be consolidating and once it’s done with its consolidation, fresh buys or longs can be initiated. The immediate support for the solo oil lies at 0.480p and if the stock would be able to sustain it, that means fresh longs can be initiated as currently the company is pretty undervalued in terms of valuation and fundamental analysis.  The immediate resistance for the stock would be 0.55p and 0.60 p respectively. Therefore traders or investors need to keep an eye at the respective levels and accordingly build or hedge their positions respectively.

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Topics: Analysis
Other Insights on Related Shares: SOLO.L
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Sometimes companies, especially with long histories, can be left for dead and buried, hobbling along in the emergency room for years amid endless profit warnings, their business model written off as hopelessly outdated. Sometimes those companies make a surprising comeback. It is the case of Hornby (HRN:LN), legendary pioneer of British toy-making manufacturing, with over a century of history. Hornby manufactures miniature train, plane and car models for hobby enthusiasts under its own brand, Airfix and Scalextric (among others). Hardly a sexy, appealing prospect for investors in the digital age. (Read more)

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Cruise ship operator Carnival Corporation & Plc revealed better than expected first quarter earnings: net income for the first three months of 2017 was $352 million, almost double the figure recorded for the same period in 2016 ($142 million). The Miami-based company, which includes its own brand Carnival Cruise Lines as well as P&O, Holland America and Costa Crociere, is dual listed in the US on the NYSE and in the UK on the FTSE (LON:CCL), and reports its earnings in US Dollars. Diluted Earnings Per Share in 2017 are $ 0.48, while diluted EPS in 2016 were $0.18. First quarter revenues were also up by $0.1 million compared to last year. (Read more)

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