Technical Analysis of Bata on 16 Dec 2016
Fundamentals: It is one of the best companies in Bangladesh.
Stable earnings, profit and EPS. Regular cash dividends.
|
Profit
|
2012
|
2013
|
2014
|
2015
|
Till Q3 '16
|
|
Annual
|
672
|
813
|
702
|
833
|
656
|
|
EPS
|
49.05
|
59.34
|
51.24
|
60.80
|
47.86
|
|
Dividend
|
275%C
|
300%C
|
280%C
|
320%C
|
|
|
NOCFPS
|
35.0
|
41.0
|
47.0
|
42.0
|
|
If I take Peter Lynch's approach... The shops are nice...products are good...sales people's behavior has improved...they are coming up with new offers...all seems well and good.
Technicals: Bata has been consolidating from 1,150 to 1,200 from 1st March 2016.
It is either accumulation or distribution. From here either it will break up or down...
With the current bullish market and based on Bata's earnings, I think it will break up.
When I don't know...so either take a position near support now or be mentally prepared to ride the wave/s, if and when it happens.
Stop loss is a bit difficult as it might breach support a few times before break out. However, I think stop loss could be set at 1,120.
Plan your trade and trade your plan...
Best wishes...
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