Wednesday, August 19, 2015 5:14 PM / Research
Today, CADBURY recorded another moderate loss of -5.00% to extend the 10wks falling trend after a prolonged sideways trading pattern. The stock broke its key supports level at N30.00kobo as investors maintained active pessimistic postures.
Further analysis revealed that the stock had maintained a strong (18Months) price correction pattern after an impressive rally of 989.80% recorded between February 29th 2012 and February 28th 2014 as price surged from N8.33kobo to N90.78kobo.
It was further observed that the stock had shed 68.54% in market value between February 27th and August 19th 2015 while both investors and shareholders maintained active and prolonged profit-booking postures.
In addition, the stock hits its 32weeks low to close in an extreme oversold region- a depressed and battered position at N28.56kobo. Further analysis reveals strong possibility of continued active sell-down as the stock had recently broken all its key supports and golden retracement points.
The lower breakout of 13.2% further buttressed the increased chance to tumble below current price-range.
Furthermore, market outlook in the week revealed mixed sentiments and active sell tendency towards the stock, recording 14.2% WTD loss. This further indicates strong unwillingness from investors to hold or acquire the stock in near term.
Also, technical indicator revealed significant surge in sell tendency towards the stock while it closed bearish in both short term and mid-long term periods as indicated by the relationship between the stock’s price and its moving averages.
Furthermore, the price analysis revealed unimpressive performance outlook as the stock posted -28.42% and -33.55% loss as its 3-month and 6-month returns respectively while its 52-week and YTD performance stood at -57.18% and -28.60% loss respectively.
Conclusively, sub-sector/peer analysis further revealed the stock to be the worst performing stock in the last one year, which further suggests that the sentiments within the sub-sector remained negative towards CADBURY