Insights for September 2017

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WM Morrisons Supermarkets is a Hold at the current level as after going through its share of correction, it seems that now the stock is ready to take off. The stock finished trading on the London Stock exchange at 235p a share on 26th September, up by 0.26% compared to the previous close. The stock confirmed the head and shoulders pattern, a few days back as it had broken the neckline at 242p and has come down up to the low of 228p respectively. However, it seems that the stock is done with its correction and has been consolidated as well. It has also breached the downward trend line and has been going up. The immediate support and resistance for the stock is at 231p and 240p respectively. In the last trading session, the stock has had made a spinning top doji candlestick pattern which indicates indecisiveness amongst the traders and investors.

Let’s throw light on the latest half yearly 2018 financial results of the company. The company announced its H1’18 results, a few days back on the September 14th. As per the results, the underlying PBT and EPS were up by 12.7% and 14.9% respectively. The company reported a free cash flow of £352m in H1’18 versus £558m in H1’17.  The net debt also reduced by a further £262m to £932m since the end of 2016/17, which is within the target of the company. The management also continued maintaining its growth outlook for the company. (Read more)

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

BT group plc is a ‘Buy’ at the current levels as the stock clearly looks undervalued at the current levels. In our last article on BT Group plc, we recommended investors to stay away from the stock on account of improper accounting practices in its Italy business and the stock has had a nonstop fall since then and has tested the lows of 280p. It started correcting from 350p and has come down up to 280p lately. However, it seems that the stock might start consolidating at the current levels and the investors/traders can initiate fresh buying positions in the stock. The stock finished trading on the London stock exchange on 18th September at 288.0p a share, up by 1.88% compared to the previous close. Currently the stock has been trading below its 50 DMA (Day moving average), 100 DMA and just a tad above 20 DMA of 297p, 299p and 288p respectively. In terms of charting or technical analysis also, the stock has completed double bottom pattern on the daily charts and is ready to bounce back. Therefore, we advise traders or investors to buy BT group plc at the current price with a target of 330p. The time frame to achieve this target would be 0 to 3 months.

Let’s throw some light on the financial year 2017 results of the company. As per the FY’17 results, the company reported the FY’17 revenue up by 27% year on year.  The reported and adjusted EPS was down by 33% and 9% respectively. The reported profit before tax was down by 19% and adjusted PBT was up by 5% respectively. However, the adjusted EBITDA was up by 18% year on year. (Read more)

Topics: Analysis
Other Insights on Related Shares: BT.A.L
Related Shares: Bt Share Price

IQE Plc (IQE:L) up has been one of the top performers in the FTSE AIM 100 Index, growing by more than 300% this year. IQE manufactures electronic components (called wafers) necessary for the incorporation of Vertical Cavity Surface Emitting Lasers (VCSELs), used for 3D sensors. These sensors are found, for example, in smartphones, and there is rampant speculation that Apple will include them in the new smartphone, for its facial recognition sensors that will be used to unlock the screen. (Read more)

Other Insights on Related Shares: IQE.L
Related Shares: Iqe Share Price

Rightmove plc is a Buy at the current levels as the stock still offers up to 8% upside from the current level. The stock finished trading on the London Stock exchange at 4086p a share on 5th September, down by 0.8% compared to the previous close. Lately, the stock went through a correction and has come down up to 4000p. Currently, the stock has been trading above 20 day moving average (DMA), below 50 DMA and 100 DMA of 4077p, 4157p and 4200p respectively. Clearly, the 50 DMA and 100 DMA are likely to act as a crucial resistance of the stock. However, a breakout above 4200p might take stock to the highs of 4600p. The immediate resistance of the stock is at 4500p.  In terms of charting or technical analysis too, the stock seems forming rounding bottom pattern which also indicates the bullish pattern. The stock seems to have consolidated at around 4000-4050p. Therefore, we recommend buying Rightmove plc at current market price with a target price of 4600p.

The company announced its half yearly 2017 results on 28th July. Let’s throw light on the latest financial results of the company. The H1’17 revenue was up by 11% year on year, driven by the continued growth in the agency and new home businesses. The underlying operating profit and operating profit were up by 11% and 9% respectively. Average revenue per advertiser was up by 10% and there was continued traffic growth with visits up by 3%. Over 1.1 million UK residential advertisements were advertised on Rightmove, a third more than any other portal. (Read more)

Posted by MaxMarioni on 3 September 2017, 5:53 PM

Meet the new UK Tech Giant

A deal merging the software applications component of Hewlett Packard Enterprises Co. (HPE:US) and Micro Focus International PLC (MCRO:LN) worth GBP 8.8 billion has created the UK's largest tech firm, overtaking Sage Group PLC. The new combined entity, which will be listed in London, will have a market capitalisation of GBP 12.7 billion and have a workforce 180,000 strong, mostly former employees of HPE. The new group will include HPE's former application delivery management, big data analytics and enterprise security units. HPE will remain the majority shareholders of the new venture (50.1% ownership) and received USD 2.5 billion in cash as part of the deal. (Read more)

Other Insights on Related Shares: MCRO.L
Related Shares: Micro Focus Share Price

Rolls Royce is a Hold at the current level as we see an upside of up to 8% from the current level. The stock finished trading on the London stock exchange at 899p a share on Monday, down by 0.83% compared to the previous close. In terms of technical analysis or charting, the stock has been forming double bottom pattern which indicates that the uptrend shall resume anytime. We expect the stock to bottom out at 880p and fresh buying can be initiated around that level. Currently, the stock has been trading below 20 day moving average (DMA), 50 DMA and above 100 DMA of 925p, 920p and 886p. Clearly, the 100 day moving average would likely to act as very strong support zone for the stock. The immediate resistance would likely be at 970p. Therefore, we would advise traders or investors to buy Rolls Royce once it has bottomed out at around 880p with a target of 960p. The momentum oscillators also indicate the same thing that the stock might correct for a few days, but shall bottom out and be in oversold zone very soon. Hence, traders or investors shall keep an eye at the respective levels and initiate the fresh longs accordingly.

The company announced its half yearly results on 3rd August 2017. Let’s throw some light on the latest financial results of the company. As per the CEO, Warren East, the results showed encouraging year on year progress and the business remains fundamentally strong and well positioned in long term growth markets. The company’s first half 2017 revenue was up by 12% yoy compared to the last year. The company reported profit before tax of £1,941m compared to the loss of £2150m last year. The marine segment continues to face challenging offshore oil and gas markets. However, the company reported good profit growth in civil aerospace and power systems with defense remaining steady. (Read more)

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