Insights for August 2017

Post an insight

BPPlc. looks fairly valued at the current levels as we don’t see much upside in the stock. The stock finished trading on the London stock exchange on 15th August at 447.0p a share, up by 0.69% compared to previous close. Lately, the stock has been in correction mode and has come down from 470p to 445p in a few days. However, we expect the stock to consolidate around 440p and the stock shall bounce back from that level. Therefore, traders or investors would be advised to keep an eye on Bp Plc. and accordingly initiate fresh buy positions. As of now we won’t recommend to initiate fresh trades in Bp Plc., till the stock is done with its consolidation and correction. In terms of technical analysis or charting, the stock has indicated bearish pattern followed by gap down and red marubozu candles. Although, yesterday, the momentum oscillator RSI indicated a bounce back but we need to get the confirmation of the same. If the stock gives a positive closing in the coming one or two trading sessions, traders or investors can initiate fresh buy positions.

Let’s throw some light on the latest financial results of the company.  As per the management, the company reported solid earnings in first half 2017.  The company reported a profit of $1,593m in first half 2017 versus loss of $2002 m. After adjusting for a net charge for non-operating items of $215 million and net favorable fair value accounting effects of $84 million, underlying RC profit for the second quarter was $684 million, compared with $720 million for the same period in 2016. Excluding post-tax amounts related to the Gulf of Mexico oil spill, operating cash flow for the second quarter and half year was $6.9 billion and $11.3 billion respectively, compared with $5.3 billion and $8.3 billion for the same periods in 2016. (Read more)

Topics: Analysis
Other Insights on Related Shares: BP..L
Related Shares: Bp Share Price

Centrica Plc. is an avoid at the current level! The stock has clearly been in a correction mode and it looks like that the correction is going to continue for the time being. Hence, traders and investors would be advised to stay away from the stock till it starts consolidating. The stock finished trading on the London stock exchange at 197.1p a share, up by 0.25% compared to the previous close. The stock has been trading on a narrow channel of 195p-215p for quite some time. However, the momentum oscillators are clearly signaling ‘Sell’ on the daily charts. Thus, we see a sharp breakdown coming in Centrica plc. anytime soon. Thus, fresh positions should be strictly avoided in the company. Currently, the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 203p, 202p and 205p.Trading below the moving averages is also clearly a bearish indicator for a stock and moving averages would act as a crucial resistance for the stocks.

The company announced its half yearly 2017 financial results on 1st August. The results also seem to dampen the sentiment of the investors as the stock hasn’t shown any up movement since the results. Let’s throw some light on the latest financial results of the company. The company reported a mixed bag of earnings on 1st August.  The company reported H1’17 revenue at £14.3bn, up by 7% compared to last year. The half yearly adjusted operating profit fell by 11% to £449m including a higher net interest cost. The adjusted operating cash flow was down by 9% reflecting one-off UK Business working capital inflow in 2016. But the good news for the investors was that the net debt came down by 22% and was in line with company’s expectations. (Read more)

Topics: Analysis
Other Insights on Related Shares: CNA.L
Related Shares: Centrica Plc Share Price

GSK Plc. is an avoid at the current levels as the stock has been in correction mode for quite some time. The company announced its results on 26th July and investor sentiments surely look dampened post the results as the stock continued its southward journey after the announcement of the results. The stock finished trading on the London Stock exchange at 1514.0p a share on Monday, 31st July. The stock has been nonstop falling post the announcement of its results. Therefore, traders or investors are advised to stay away from the stock at least for the time being. In terms of charting or technical analysis also, the stock has made rounding top pattern which further confirms the bearish pattern of the stock and we expect the bearish trend to continue for the short term and see no signs of reversal anytime soon. The momentum oscillators like RSI and MACD also indicates the same. The stock has also been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 1594.0p, 1644.0p and 1640p respectively. The weekly charts also indicates double top pattern which again is a confirmation of bearish trend. Thus, GSK Plc. is an avoid for sure for the time being.

Let’s throw light on the latest financial results of the company. The company reported a loss per share of 3.7p in Q2’17 because of charges resulting from increase in the valuation of consumer and HIV businesses and new portfolio choices. However, the company’s topline grew by 12%, driven by continued momentum and growth in Pharmaceuticals and Vaccines. Also, the pharma giant reiterated its outlook for sales and earnings performance to 2020. GSK expects sales to grow at CER at a low-to-mid single digits percentage CAGR and Adjusted EPS to grow at a mid-to-high single digits percentage CAGR for the period 2016-2020.  These outlooks are based on 2015 exchange rates and anticipate that at least one version of generic Advair will be launched in the US before 2020.   (Read more)

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