Insights for February 2017

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Barclays returns to profit by posting net gains for the year ended in 2016 of £1.62 billion ($2.02 billion), which came however short of the £1.97 which had been predicted by analysts. Forth quarter pre-tax profits were £ 330 million ($410 million), up from a loss of £2.1 million which had taken place a year ago. In any case the Bank's numbers are much better than the previous year's results, which saw the bank recording a loss. Statutory group profit before tax trebled at £3.2 billion ($3.9 billion) in 2016 when compared with the £1.15 billion loss recorded in 2015 for the same measure. (Read more)

Other Insights on Related Shares: BARC.L
Related Shares: Barclays Share Price

GlaxoSmithKline Plc. is a compelling buy at the current levels. The stock has been rallying for quite some time now and we anticipate this rally to continue. The stock finished trading on the London Stock exchange at 1654 p a share on Tuesday, 21st February. Currently, the stock has been trading above its 20 day moving average, 50 DMA and 100 DMA of 1569p, 1556p and 1571p respectively. The stock has been trading 6% below its 52 weeks high and 21% above its 52 weeks low. In terms of technical indicators also, the stock has been making higher highs and lower lows and have been trading on the upward trend line. We see Stock going towards 1720 p in a short term only and stock might have resistance at 1720 p. The immediate support for the stock is at 1575p and it’s pretty unlikely that the stock would go below 1575p. Therefore, any dip in GSK PLC is nothing but a lucrative opportunity to buy or built fresh long positions. The RSI indicator also states that the stock shall continue to rally for some time.

The company announced its financial year 2016 results a few days back on 8th February 2016. Let’s throw some light on the results of the company. The company’s 2016 sales were up by 6% CER and segment wise pharmaceuticals sales were up by 3%, vaccines were up by 14% and consumer healthcare sales was up by 9%.  The company’s cash flow from operations also improved in the year 2016 to £6.5 billion compared to £2.5 billion in the year 2015. Also, new product sales also doubled to £ 4.5 billion and new pharmaceutical sales represented 24% of the year 2016 total sales. The company also declared a total dividend of 80p and is expected to pay similar dividend in the year 2017 as well. (Read more)

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

BP Plc. is a ‘Hold’ at current price levels. As mentioned in our last article, that BP Plc. may correct up to 450p and BP PLC did go up to 450p!. The stock finished trading on the London stock exchange at 449p on Wednesday, 15th February.  The stock has been trading 83% above its 52 weeks low and 12% below its 52 weeks high.  Currently, the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 474p, 488p and 476p respectively. Clearly, the stock has been in a downward trend and has been correcting and couldn’t break the resistance at 520p. The immediate support and resistance for the stock is at 455p and 480p respectively. However, the stock seems to be in a consolidation mode and once consolidation is over, the investors can initiate fresh long positions.

(Read more)

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

What a difference a year makes for the critical evaluation of a stock's performance. Last year, Rio Tinto, the second biggest mining company in the world by market share, had reported a loss totalling US $866 million in its 2015 annual results. The stock nose-dived on the back of cutbacks on its dividend and concerns on its levels of debt. The Anglo-American mining giant seems to have really turned a corner now. In the words of the company's Chief Executive, J-S. Jacques: [Rio Tinto]'s results show we have kept our commitment to maximise cash and productivity from our world-class assets, delivering $3.6 billion in shareholder returns while maintaining a robust balance sheet. […] We enter 2017 in good shape.” (Read more)

Other Insights on Related Shares: RIO.L
Related Shares: Rio Tinto Share Price