Insights for January 2018

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Sirius Minerals Plc shall be avoided for the time being. The stock finished trading on the London stock exchange at 23.0p on 17th January, down by 0.40% compared to the previous close. The stock has been non stop falling for the past few weeks and it seems that the correction shall continue for the coming days as well. In terms of technical analysis or charting, the stock has been trading firmly on the downward trend line which further confirms the further bearish sentiment of the stock. It has been constantly forming lower highs and higher lows and we don’t see any signs of consolidation soon. Currently, the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 23.0p, 24.4p and 25.2p respectively. The momentum oscillator ie macd also indicates towards the bearishness of the stock. The immediate support and resistance is placed at 22.0p and 25.0p respectively. However, any breakdown below 20.0p may push the stock even lower.  Therefore, traders or investors shall be adviced to avoid initiating any fresh long positions in the stock.

The company lately announced the quarterly update on 12th January 2018. As per the update, the project remains on track to deliver the first polyhalite and commercial production on time and on budget. However, current diaphragm walling activities are approximately two months behind the schedule. However, the review of 2017 milestones demonstrates good progres (Read more)

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

Amid a general slump in retail sales in Britain between December and early January, Primark, the British low-priced high-street retail chain, managed to record a 7% sales growth during the festive season. Shoppers seemed to have snubbed other higher-priced retailer rivals, opting for the discount fashion brand as brexit-induced price squeezes bit deep into their pockets. Primark owner Associated British Foods Plc is benefiting greatly from Primark’s success, and is poised to further expand the fashion brand’s network of 350 stores, after the opening of five new stores last year.

AB Foods CFO John Bason commented that ‘Of the 20 largest retailers, our market-share growth has been the strongest over the last year’, after Primark showed strong trading figures over the sixteen weeks to January the 6th. The main sales growth drivers were the expansion of retail space and the growth in market share, siphoning off sales growth from rival fashion stores. The discount fashion store’s performance in Europe, though, was mixed, as Primark sales suffered from the unseasonal good weather in October. (Read more)

Topics: Retail
Other Insights on Related Shares: ABF.L
Posted by MaxMarioni on 14 January 2018, 6:05 PM

Aston Martin Going Public?

Aston Martin has been holding preliminary talks with financial advisers about a potential initial public offering of the British premium automotive brand. The manufacturer is said to be targeting valuation of up to GBP 5 billion, and would naturally choose London to float its shares. The valuation is only a preliminary estimate, and no final decision has been made regarding potential financial advisers. (Read more)

Posted by MaxMarioni on 6 January 2018, 5:26 PM

What's in stocks for 2018

The year ahead on the stock market is likely to continue in the same way as 2017, characterised mainly by one thing, and one thing only: Brexit. Many, if not all the questions relating to Britain’s future economic and market landscape stem from this issue. Will the government be able to secure that-all important deal with the EU to preserve some kind of access to the single market and begin the trade negotiations proper? Or will it all fall apart and Britain will crash out with no deal? Will this spell the end of Theresa May’s reign and will Jeremy Corbyn climb the stairs into No. 10? How will pound sterling be impacted by all this? Will companies in the City resort to contingency plans and relocate offices to Europe en masse? And, will the stock market index soar as a result of favourable negotiations, or crash out following a breakdown in talks? (Read more)

National Grid Plc. is an avoid at the current price. The stock has been nonstop falling for the past few weeks. The stock finished trading on the London stock exchange at 864p a share, up by 0.58% compared to the previous close.  Currently the stock has been trading below its 20 day moving average (DMA), 50 DMA and 100 DMA of 870p, 880p and 894p respectively. In terms of technical analysis or charting, it seems that the stock would continue to correct more and the downfall shall continue as the stock has been trading on the downward trend line. The momentum oscillators are also pointing out towards the weakness in the coming trading sessions. Therefore, we would advise traders or investors to avoid national grid for the time being.

Let’s throw some light on the half yearly 2018 results of the company. As per the results, the company reported the adjusted operating profit at £1,368m in H1’18 versus £ 1,318m in H1’17. The company’s capital investment has increased to £2bn for the first six months of the year, reflecting significant investment in developing and maintaining gas and electricity infrastructure. Also, the US regulated business continued to make good progress as well. (Read more)

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