Wm Morrison Supermarkets : In oversold situation
February 07, 2013 at 04:26 am EST
By
Entry price | Target | Stop-loss | Potential |
---|
GBX 251.7 |
GBX 0 |
GBX 247.35 |
-100% |
---|
From a fundamental viewpoint, the security is cheap with a PER of 9.4x for 2013 and 9.27x for 2014. Besides, EV/Sales is low with a ratio at 0.46x for this year.
Technically, the security is in a negative configuration in the short term as the bearish trend of 20-day moving average, currently at GBp 253.8, shows. Nevertheless, the stock seems in an oversold situation, near to its GBp 250.1 support in daily data. This level might stop the bearish trend in the short term.
A pullback towards GBP 259.2 is anticipated, active investors can take a long position above GBp 250.1. However, a bearish trend would regain the upper hand if the security crosses GBp 250.1.
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.