Strategy published on : 11/06/2017 | 09:31
short sellStop-loss triggered
Entry price : 31.04€
Target : 29€
Stop-loss : 32€
Potential : 6.57%
The movement to the downside is still in force and should gain in strength over the next trading sessions based on our expectations.
Investors should open a short trade and target the € 29.
● In view of fundamental criteria, the company is among low performers as far as mid or long-term investment strategy is concerned.
● For a short-term investment strategy, the company has poor fundamentals.
● Graphically speaking, the timing seems perfect for purchasing the stock close to the EUR 30.37 support.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● The group usually releases upbeat results with huge surprise rates.
● The equity is one of the most attractive in the market with regard to earnings multiple-based valuation.
● The company is one of the best yield companies with high dividend expectations.
● Over the past year, analysts have regularly revised upwards their sales forecast for the company.
● The difference between current prices and the average target price is rather important and implies a significant appreciation potential for the stock.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● One of the major weak points of the company is its financial situation.
● Prospects from analysts covering the stock are not consistent. Such dispersed sales estimates confirm the poor visibility into the group's activity.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● The underlying tendency is negative on the weekly chart below the resistance at 35.14 EUR