Harbour Energy plc : Opportunity to sell
April 26, 2013 at 04:19 am EDT
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 372 |
GBX 0 |
GBX 385.75 |
+100% |
---|
Premier Oil has finished its rebound and should now start a bearish trend.
Analysts recently revised downward EPS estimates. From now on, Thomson Reuters consensus estimates a GBp 0.64 EPS for the current year and GBp 0.77 for the next year. On this basis, the security is currently trading respectively 8.92 and 7.48 times its sales. There is a downside risk because of the negative momentum, poor fundamentals and reduced business predictability. Indeed, the company has an EV/Sales ratio of 2.51x.
Prices are in uptrend, in the very short term, but it should be stop soon. The security is still under its 20-day moving average and the GBp 374.2 resistance, a bearish configuration might happen in the coming trading sessions.
Thanks to all these elements, most active investors can take a short position in Premier Oil and anticipate a pullback toward GBp 351.1. A stop loss will be placed above the GBp 374.2 resistance.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.