Long Top5 oversold/overbought according to RSI & $JSEWBO
End of week 22Feb19. Another week dominated by mostly Resources & also
CPI
.
AMS
also ended off the week at a 52-week HIGH. FTSE/JSE Allshare ( JSE:J203 ) Top5 oversold/overbought according to 14day RSI indicator as follow:
WBO
17
TON
19
REB
23
DLT
23
HYP
23
IMP
82
AGL
81
AMS
81
CPI
77
KIO
76
Spending a few minutes on one of the most oversold companies of the week (according to RSI ), namely Wilson Bayly Hlm-Ovc.
According to recent half-year trading statement, HEPS are expected to fall between 80%-100% compared to last year. The main reason:
"Recognition of a material provision in respect of the anticipated loss to complete the OSAR Western Roads infrastructure project in Australia. The completion of contract anticipated loss is due to the interpretation of the technical specifications within the contract bid design resulting in the underestimation of the physical construction works required under the design and construct contract. The Group is investigating all possible recoveries." - Sources JSE SENS
I still believe that this is a quality company. I will however wait until this coming Tuesday (26 February 2019), when results are expected to be released, before I buy any more. I expect a lot of "buy on rumors...sell on facts" until then, so be very careful buying or shorting WBHO until Tuesday.
Technically, if the actual news turns out to be worse than expected and the “mistake” could have a long-term (and not a once-off as expected) effect on the company, then the long-term resistance line at around R95, could very much be tested. The price recently found its feet around the 0.236 Fibonacci Retracement. Should be see a recovery in the share price, R125.80 could be next resistance levels, with the 50-day moving average at R135.28 being a nice little target level over the short-term.
CPI
.
AMS
also ended off the week at a 52-week HIGH. FTSE/JSE Allshare ( JSE:J203 ) Top5 oversold/overbought according to 14day RSI indicator as follow:
WBO
17
TON
19
REB
23
DLT
23
HYP
23
IMP
82
AGL
81
AMS
81
CPI
77
KIO
76 Spending a few minutes on one of the most oversold companies of the week (according to RSI ), namely Wilson Bayly Hlm-Ovc.
According to recent half-year trading statement, HEPS are expected to fall between 80%-100% compared to last year. The main reason:
"Recognition of a material provision in respect of the anticipated loss to complete the OSAR Western Roads infrastructure project in Australia. The completion of contract anticipated loss is due to the interpretation of the technical specifications within the contract bid design resulting in the underestimation of the physical construction works required under the design and construct contract. The Group is investigating all possible recoveries." - Sources JSE SENS
I still believe that this is a quality company. I will however wait until this coming Tuesday (26 February 2019), when results are expected to be released, before I buy any more. I expect a lot of "buy on rumors...sell on facts" until then, so be very careful buying or shorting WBHO until Tuesday.
Technically, if the actual news turns out to be worse than expected and the “mistake” could have a long-term (and not a once-off as expected) effect on the company, then the long-term resistance line at around R95, could very much be tested. The price recently found its feet around the 0.236 Fibonacci Retracement. Should be see a recovery in the share price, R125.80 could be next resistance levels, with the 50-day moving average at R135.28 being a nice little target level over the short-term.
Operación activa:
Ok, so not as bad as worst case scenario (80% vs 100% of EPS) & loss seems to be under control. Management believe they have recognised the full extent of potential loss. There are a number of recovery options available in terms of both delivery of the project and claims. $JSEWBO therefore look positive for a possible further recovery.
SENS: senspdf.jse.co.za/do...20190226_S411450.pdf
SENS: senspdf.jse.co.za/do...20190226_S411450.pdf