Stagecoach coming up to an important level

Wednesday, 3rd April 2019 10:47 - by Rajan Dhall

In their latest trading update, Stagecoach's revenue grew in all area except North America. Although the company have stated ''we expect the disposal of the North America Division to complete before the financial year end''.

Elsewhere, here are the main points from the report:

• UK Bus (London) - forty four weeks ended 2 March 2019     1.3%
• UK Bus (regional operations) -  weeks ended 2 March 2019     3.4%
• North America - ten months ended 28 February 2019      (1.4)%
• UK Rail (excluding Virgin Trains East Coast) - forty four weeks ended 2 March 2019     1.4%
• Virgin Rail Group - forty four weeks ended 2 March 2019     6.7%
• The financial performance of our rail businesses is ahead of our expectations (UK Rail and Virgin Rail Group)

Looking at the chart now and it seems the downtrend is finally broken. Having said that there is a consolidation on the weekly chart below. 124 - 185p is now the range we need to see price break out from. If we see a clear break backed by firm volume it would be a signal that the tide is turning for this company. The 185p also is just before the "value area" on the composite profile on the left and side of the chart (around 200p). As the Southwest Trains debacle draws to a close maybe price can gain momentum.

The Writer's views are their own, not a representation of London South East's. No advice is inferred or given. If you require financial advice, please seek an Independent Financial Adviser.