CHART ATTACK - Longs and Shorts. (epic char)
(CHAR)
goldfinger
- 12 Jan 2010 20:42
A thread created for the TA of charts on the LSE markets. (aim and plus included)
Beginners and advanced wellcome. Long or short, just post your views and lets have some positive discussion. FIRE AWAY.
NB, UK indicies and sector charts can also to be included in posters analysis
How about AMEC campers? fair bit of good news over the last month, but like a lot of other shares, up and down with the Footsie. Ex divi today like NG. so that expected drop is out of the way now. May go down a bit more, to 950p perhaps, but might be worth keeping an eye on.
New year low for Tesco's (lowest since early 2009 in fact), and just under the psychological £3 level. Interesting to see whether buyers come in at this level or whether it drops further.
I have BAB also on watch, some very good results last month and the dividend is covered over 2x's, FTSE 100 promotion also on the cards and the board believe earnings will be above expectations. Europe is a concern although our own government making further cuts in the MoD, RAF etc is more of a concern. 800 tested and supported however I'm not convinced of the support here.
For me the 800 downside needs further testing, all the good news is already priced in. I'm sceptical if tested again the 800 wouldn't hold up for long and we'd see a fall to 750ish resistance.
BAE announced today the closure of its Newcastle factory
"BAE said the proposal to close the old Vickers site in Newcastle at the end of 2013 followed a business review that concluded that there was no prospect of new UK armoured vehicle manufacturing work once production of the Terrier ends."
From Babcock Finals
"In the UK the £38 billion shortfall in the Defence Budget over the next 10 years is being addressed through a comprehensive review of existing and planned programmes and personnel requirements. As a result, radical organisational change is proposed within the MoD together with significant reductions in equipment spending and in uniformed and civilian MoD staff. Within this context we expect the increasing pressure on budgets and manpower will drive greater outsourcing and the short-term potential for the extension of existing contract services in support of MoD legacy assets."
This all suggests to me that forward EPS will begin to fall, problems within Europe will possibly compound the situation. The recent highs are unsupported as we've yet to test the downside. As such BAB remains on my watch list until forward EPS is backed up or downside support is found.
I'm very aware this goes againt the price trend however it's got to top out somewhere and I'm neutral to bearish with all the spending cuts going on when it comes to defense and supporting services.