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It’s technical analysis. The prediction of future price action from identifying patterns in previous price action. It’s trading not long term investing. It’s a good company and I will be looking to buy back on the dip like I said. It’s the way markets work - you have short term traders and long term investors. Have a look at the price movement since June - declining highs of 282 in June, 265 in July, 252 in September, 242 in October, 235 the other day. The lows act in a similar fashion. The Society of Technical Analysts would agree with me. Short term traders and Systematic Hedge Funds trade off such indicators. When it does break out then they may well be a sharp move higher, probably triggered by good final numbers for example. Short term traders can make money in the meantime prior to such a move. I was merely trying to explain the price action. Marston’s brewery doing exactly the same thing at the moment. I have made money from a 5 month downtrend in price. If you don’t like that well that’s up to you I guess. There is no need to be rude about it though. Good luck.
Not quite. It’s a declining channel so overall price going down over time. Imagine 2 downward sloping parallel lines. The price has been sitting between them since June and has hit the top and bottom a total of 9 times since then. Currently range 205-235 but in a couple of months it looks like it will be 195-225 etc unless there is a big event to cause a breakout eg a fantastic set of results. Once it does break out it’s likely to go the width of the channel ie 30 points pretty quickly, upwards in that particular scenario. Technical analysts will just trade that range so it kind of becomes self fulfilling.
Having made a double top around 235 at the top end of the downward channel but failing to break out we may be on the way back to 205-210 support level (bottom of channel) where I would look to buy back in.
236-240 an important technical resistance level on daily candlestick charts. It’s been in a downward channel since June and been capped 4 times. If it breaks out price could head back to 280 previous highs but if not then 205 is a possibility downside but buy back in there.
Goldman are long the stock - they lend it to a hedge fund who can then sell it ie short it. They have to buy it back at some point and give it back to them - for the Hedge fund they want lower, Goldman don't care they charge a rate of interest.
Currently in Loughton Essex MCS have a completed development via Ortus homes with 11 apartments the last 2 bed of which is currently on market for £610k - the rest already sold (all 2 beds were around that price). They are also currently building a larger development down the road under MCS banner and have just announced prices to buy off plan for 1 beds at £420k and 2 beds apartments at £600k with launch event 8th March (currently finishing foundations). The plan is to have people in there by Autumn. The profit margins on these must be significant at those prices.
I live in Loughton in Essex and round the corner from me they have recently built an 11 unit 2 bed luxury apartment development and are shipping them out at around £600k with 80% sold so the profit on just that one must be impressive (as Ortus Homes). They have also started a larger MCS development just down the road with another planned in Buckhurst Hill nearby. I can't see 2 bed flats in those ones for anything less than £350-400k just from local comparison (e.g. recently completed 2 bed flats above Sainsbury's local going for £400k). Overpriced? Possibly, but market forces dictate and they must have significant margin if they can shift them.
Actually take a look at RNS from 31 Oct as well - they have bought around 8.2 million shares in last few days. Obviously think results will be good on 15th.
NAV will be affected by rest of market move yesterday - don't forget we have likes of AstraZeneca, Glaxo, Rolls Royce in there etc so reflecting that. NAV should follow today's FTSE move higher tomorrow. Look on it as a buying opportunity.
Tempus in the Times tipping RCN as a buy this morning.
Simon Thompson in IC calling for 230p SFE medium term target again today.
Lack of upward movement in TEF is not the fundamentals because they have already f/c £120 million profit over next 4 years. however Schroders have offloaded 2 million shares since August due to significant redemptions as a number of their other shareholdings have tanked in recent months. TEF has over £1 billion of business already in the pipeline looking ahead. Interims due tomorrow - expect record sales with excellent margins.
You could also consider Telford Homes theoretically in the same category for merger as already London specialists specifically in regeneration type areas ie Newham, Tower Hamlets and Hackney with significant projects ongoing (and mostly pre-sold) in these areas.
Got burnt previously on a bounce off the 50 resistance level but now it has broken through mulling getting back in. Significant exposure to TEF though and not sure if another housing sector stock is exactly what you could call diversification.
Simon Thompson at IC tipped again today target 70p
Interesting Simon Thompson tipped as buy again in IC today target 230p but no great uplift in price...or volume really.
Good results - can only have been tree shake and General Scottish uncertainties yesterday. Expect Simon Thompson will also tip once again in coming days so only a Yes vote from our Scottish friends can weigh on the SP IMO.
Tipped as IC share tip of the week
Safestyle have just changed their website which now says 18th September rather than 8th as it has previously done. Well done boys that really inspires confidence!