Strategy published on : 05/09/2019 | 04:18
Entry price : 0.998€
Target : 0.85€
Stop-loss : 1.1€
Potential : 14.83%
The underlying trend is clearly bearish for stocks in Technicolor. This should continue to be the case over the coming trading sessions.
Investors should open a short trade and target the € 0.85.
● The company usually posts poor financials for mid or long term investments.
● The share is getting closer to its long-term support in weekly data, at EUR 0.89, which offers good timing for buyers.
● The stock, which is currently worth 2019 to 0.27 times its sales, is clearly overvalued in comparison with peers.
● The average target price set by analysts covering the stock is above current prices and offers a tremendous appreciation potential.
● According to Thomson-Reuters' forecast, revenue growth prospects are expected to be very low for the next fiscal years.
● Low profitability weakens the company.
● 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 earnings releases usually do not meet expectations.
● For the last twelve months, the analysts covering the company have given a bearish overview of EPS estimates, resulting in frequent downward revisions.
● For the past year, analysts have significantly revised downwards their profit estimates.