NPK trade ideas
Nampak: 9 Weeks, +73%. Take Profits HereNampak: 9 Weeks, +73%. Take Profits Here - Original Idea Attached (26 July).
As I noted at the time:
An extract from my research note for Monday, 26 July.
Nampak ( NPK , 219c)| NPK trades near the lower boundary of it’s linear regression and in line with it’s 50/61.8% Fibonacci retracement level. Note both the MACD and RSI have developed a bullish divergence . The share is considered higher risk however favoured on a weekly close above 227c, using a stop-loss of 195c. Target range: 275c to 290c.
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Nampak - S/Term Target Exceeded. Possible Re-Rating Underway. Nice move over the week as a result of it's trading update.
Possible fundamental re-rating underway.
Original idea attached, published at the top of last week.
NPKAn extract from my research note for Monday, 26 July.
Nampak (NPK, 219c)| NPK trades near the lower boundary of it’s linear regression and in line with it’s 50/61.8% Fibonacci retracement level. Note both the MACD and RSI have developed a bullish divergence. The share is considered higher risk however favoured on a weekly close above 227c, using a stop-loss of 195c. Target range: 275c to 290c.
JSE:NPK Increased VolumeIncreased volume is reading NPK for the break out above the yearly pivot point. We observed the underlying strength in the stock - see link below- but the increased volume could indicate the readiness for the stock to start the move.
JSE:NPK Nampak MarkupNampak has formed a long term (on the weekly timeframe) declining wedge that has been broken and the mark up has been started. We have seen above-normal volume on the stock, a break of the base that was formed since early 2020, signs of strength (SoS), backup (BU) to the trading range, markup and now a reaccumulation at the yearly pivot point. The volume indicates that we can expect a next step higher in the markup.
Bull FlagNPK to test resistance at 278
Balance sheet is looking good with current ratio 1.7252 and total assets 16.194B and total Liabilities at 8.309B. Revenue only down 23%
RSI suggests share is oversold.
NPK AGM at 9 Feb 2021, I suggest to buy at close range of support at 201 before this date.
$JSENPK has broken the resistance big up day!$JSENPK has broken the resistance next target above R1.19
#NAMPAK - Building a position here - After the recent surge in price (trade update) , the stock has come back to a level where i would like to accumulate
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
JSE:NPK
NAMPAK - Bazooka 🚀- Massive move on the share yesterday after a trading update.
Investors who were accumulating on the 18th of September (big volume spike) must be smiling!
JSE:NPK
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
Long NAMPAK (NPK) JSE 1H JSE:NPK is South Africa's leading diversified packaging manufacturer. As of basic knowledge due to lockdown regulations economic growth has been slower across the world. JSE:NPK also took a great loss due to this pandemic.
Fundamental positives :
- Gross Profit Margin : 30,34% ( Relatively Strong )
- Current Ratio : 1,36 ( They have enough current assets to manage short term debt )
- Price/Book Ratio : 0,10 ( They are undervalued because the ratio is below 1 )
Technical Analysis :
- JSE:NPK has recently started to move in a upward parallel channel
- The support line has a steeper climb than the resistance trendline indicating stronger bullish movement
I would recommend to set Take Profit targets at R2,28
Always use Risk Management when entering a trade .
Nampak JSE:NPKGood Grief. Support at zero ..... one to watch, the opportunity to trade a few relief rallies as it drags it's lifeless body along. André de Ruyter abandoned ship, what will he do at Eskom?
$JSENPK - Ascending triangle (Intra-day b/o)$JSENPK, looking for a close and hold above 1003 to confirm the b/o
Nampak
Nampak: NPK is starting to show healthy share price action and a willingness to make a change in the downward trend. Following the breakout we saw at the beginning of June, the price has been consolidating on the breakout level and developing a rounding formation (highlighted in blue). We are also seeing the 50 and 200-day moving averages being regained.Fundamentally, the share remains one of the least expensive due to concerns such as local GDP growth and it's exposure to Africa (reparation of monies out of Nigeria, Angola and Zimbabwe), trading as follows:
P/Earnings: 12.8x
DY: -
P/Book: 1.06x
P/Sales: 0.62x
