Insights for October 2017

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Posted by ShrutiAggarwal on 27 October 2017, 7:15 AM

Tesco Plc, a Hold at the current levels

Tesco Plc. is a hold at the current price levels as the stock has had a spectacular rally since July this year and it looks like the rally shall continue! The stock finished trading on the London Stock exchange on 24th October at 188.0p a share, up by 0.3%.  The company announced its half yearly 2018 results on 4th October and the stock was down by nearly 5% the same day. However, the next day onwards the sentiment picked up and stock has been again rising. In terms of technical analysis or charting, the stock has been trading on the upward trend line for the last four months. Currently, the stock has been trading above its 20 day moving average (DMA), 50 DMA and 100 DMA of 186p, 184p and 179p respectively. The stock has been nonstop making higher highs and lower lows which further confirm the bullish trend of the stock. The immediate support and resistance of the stock is seen at 185p and 190p respectively. Any breakout above 190p would take the stock up to 215p.  Therefore, traders or investors need to keep an eye at the respective levels and accordingly hedge their positions.

Let’s throw some light on the latest financial results of the company.  The company’s H1’18 revenue is up by 3.3% year on year. Operating profit before non-recurring items is up by 27% year on year. The operating margin in H1’18 was 2.7% versus 2.2% in H1’17. As per the management, the debt would be reduced thereby strengthening the balance sheet and cash flows would also improve. Going forward, the management expects the capital expenditure to remain between £1.1bn and £1.4bn per year. The company has also proposed a merger with Booker and is currently undergoing the due diligence. Therefore, the company would continue to report organic growth as well. (Read more)

Topics: Analysis
Other Insights on Related Shares: TSCO.L
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Posted by MaxMarioni on 8 October 2017, 9:23 PM

Ryanair HR Crisis Hits Stock Price

Low-cost airline carrier Ryanair Holdings Plc (RYA:LN) has been hit hard by a crisis involving personnel scheduling, which has left several hundred flights grounded since September, and thousands of passengers stranded. Ryanair has been cancelling 40 to 50 flights a day during a six-week period, effectively ordering pilots to go on leave in order to address legal requirements for staff holidays. The carrier has fallen foul of Irish authorities because it has neglected ensuring that its pilots take all the vacation time they are eligible for, as required by law. In this way the carrier has accumulated a huge backlog of vacation hours, which the regulator has demanded needs to be eliminated by the end of the year. (Read more)

Posted by MaxMarioni on 8 October 2017, 9:22 PM

Ryanair HR Crisis Hits Stock Price

Low-cost airline carrier Ryanair Holdings Plc (RYA:LN) has been hit hard by a crisis involving personnel scheduling, which has left several hundred flights grounded since September, and thousands of passengers stranded. Ryanair has been cancelling 40 to 50 flights a day during a six-week period, effectively ordering pilots to go on leave in order to address legal requirements for staff holidays. The carrier has fallen foul of Irish authorities because it has neglected ensuring that its pilots take all the vacation time they are eligible for, as required by law. In this way the carrier has accumulated a huge backlog of vacation hours, which the regulator has demanded needs to be eliminated by the end of the year. (Read more)

Posted by MaxMarioni on 8 October 2017, 9:21 PM

Ryanair HR Crisis Hits Stock Price

Low-cost airline carrier Ryanair Holdings Plc (RYA:LN) has been hit hard by a crisis involving personnel scheduling, which has left several hundred flights grounded since September, and thousands of passengers stranded. Ryanair has been cancelling 40 to 50 flights a day during a six-week period, effectively ordering pilots to go on leave in order to address legal requirements for staff holidays. The carrier has fallen foul of Irish authorities because it has neglected ensuring that its pilots take all the vacation time they are eligible for, as required by law. In this way the carrier has accumulated a huge backlog of vacation hours, which the regulator has demanded needs to be eliminated by the end of the year. (Read more)

Posted by MaxMarioni on 1 October 2017, 4:14 PM

Tesco comeback kid?

Analysts expect Tesco (TSCO:LN) sales figures in the half-year term will have recorded a modest rise of 3%, increasing to GBP 28.1 billion, while also operating profits will have improved, moving up by 2% to GBP 502 million. This comes after a few rocky years, where the retailer, still presumed to Britain’s biggest, had to fight financial fraud allegations and the consequences of spiralling cost-inflation. (Read more)

Other Insights on Related Shares: TSCO.L
Related Shares: Tesco Share Price