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Enwell Energy (LSE:ENW) - One for the watchlist.Enwell Energy (ENW) is showing strong technical signals, making it a compelling watch for those tracking the oil sector. Currently trading above both the 12- and 36-month SMAs, the stock's RSI and MACD indicators are trending upward, suggesting bullish momentum. The weekly chart positions it above the Ichimoku cloud, with potential to break into the monthly cloud on a sector-wide oil reversal. Fundamentally, Enwell scores an impressive 100/100 on Stockopedia, highlighting its robust financial health and growth prospects. This combination of technical strength and strong fundamentals makes it a stock to keep on the radar. Stop would currently be held at 20p. I do not hold shares in ENW.
LSE:ENWLong
by thebradski007
103x Return on Great Western Mining Corporation I think there is a good chance this is the bottom of the market for this stock. With the precious metals bull market reigniting since October 2023 this stock has only declined further and many other mining companies in this sector have seen significant gains. This is typical price action for a penny stock where there is no production yet. I do however see there is a good chance the tide is about to turn and I now see a greater than 500 Reward to Risk ratio here with a 15% decline the maximum I would allow. The expected upside is 10,200% which is equivalent to a 103x return. It may take it’s time though to get going and reach those stages where there are some really nice candles up outpacing many of the large caps. So patience is key with this one and I wouldn’t recommend putting a huge amount in and instead you would be better off having your core allocation in the large caps. One reason why I believe this opportunity is great is because I see the downside risk being limited to 15% which I also believe is the bottom of the market. The short term downside risk on the larger caps is greater than this so I think it becomes a good opportunity because of this. I do however expect the large caps generally to continue to outperform this penny stock over the short term but I think it is highly likely there will come a point where this stock starts to shoot up and outperform the large caps. So it may leave you frustrated for a while so my advice is to just allocate a small amount and leave it for 5-10 years.
GLong
by TipsOfPips
Stock Selection: How to Tip the Tailwinds in Your Favour Stock selection is a game of fine margins but understanding a few key factors can tilt the probability of success in your favour. By focusing on these crucial elements, you can ensure that when it comes to buying stocks, you’re sailing with the prevailing tailwinds rather than fighting against them. 1. Don’t Fight the Market Ever heard the saying, “a rising tide lifts all ships”? This holds true in the stock market. Favourable market conditions can make an average investor look like Warren Buffett. When the market is stable, it allows other factors to shine, while a risk-averse environment can dampen even the best stock’s performance. Don’t overthink this concept—use simple moving averages, such as the 50-day and 200-day, when analysing the index. Pair this with basic structure analysis to assess overall market conditions. Ask yourself: What is the long-term trend in the index? What is the current momentum? What does the price structure look like? The better the market conditions, the more aggressive you can be in your stock selection, as the broad tailwinds are stronger. Example: FTSE 100 The FTSE 100 index has been navigating a choppy sideways range since May, but there are still signs of optimism beneath the surface. While we’re not in a full-blown bull market, the 50-day moving average (50MA) remains comfortably above the 200-day moving average (200MA), and both are sloping upwards—indicating a long-term uptrend. Prices are currently hovering near the 50MA, suggesting the market’s tailwinds remain mildly favorable, even amidst some volatility. FTSE 100 Daily Candle Chart Past performance is not a reliable indicator of future results 2. Earnings Catalysts: The Power of Post-Earnings Drift Positive earnings surprises can work wonders for any stock. They often create price gaps that signal strong short-term momentum. Moreover, positive earnings surprises can take time to be fully ‘priced in’ because large institutional investors typically stagger their investments over time. This phenomenon, known as post-earnings announcement drift, can lead to continued price appreciation following an earnings beat. Look for stocks that have recent positive fundamental catalysts in their price history. This focus can give you a clearer path toward potential gains. Example: Barclays (BARC) In February, Barclays revealed a strategic plan that reignited investor confidence and sparked a sharp breakout in its share price. The bank announced a £10 billion buyback program, coupled with £2 billion in cost cuts, aiming to boost profitability and efficiency. Barclays also set its sights on delivering returns in excess of 12% by 2026, with a renewed focus on its higher-margin UK consumer and business lending divisions. This announcement acted as a major earnings catalyst, forming the foundation for a strong uptrend that followed. BARC Daily Candle Chart Past performance is not a reliable indicator of future results 3. The Buyback Bounce: Share Buybacks Companies that initiate share buybacks signal confidence in their stock and a commitment to returning value to shareholders. When a company buys back its shares, it reduces the total number of outstanding shares, often resulting in an increase in earnings per share (EPS) and potentially boosting the stock price. While this isn’t an exact science, a stock undergoing a share buyback that meets the other criteria on this list can provide a solid tailwind for your investment. Example: Mastercard Incorporated (MA.) In the second quarter of 2024, Mastercard repurchased approximately 5.8 million shares for $2.6 billion. Through the first half of 2024, the company bought back 10.2 million shares at a total cost of $4.6 billion. As of July 26, 2024, MA had repurchased an additional 1.9 million shares for $820 million, leaving $8.7 billion remaining under its approved share repurchase programs. These strategic buybacks not only reflect Mastercard's strong cash generation capabilities but also underline its commitment to enhancing shareholder value, making it an attractive consideration for investors seeking growth. MA. Daily Candle Chart Past performance is not a reliable indicator of future results 4. Focus on Financial Quality When hunting for stocks, there’s often a tendency to bargain hunt, looking for those poised for a bounce. However, we believe that, over the long term, high-quality companies are best positioned to outperform the market. You don’t have to be a Wall Street analyst to develop a robust quality filter. The following financial metrics can help ensure that the stock you’re buying is solid and less likely to face dilution: • Return on Equity (ROE): Most companies will claim they are high-quality businesses that prioritize investors, but checking this metric helps verify their claims. A high ROE of 15% or more indicates efficient use of equity and a commitment to shareholder value. • Free Cash Flow (FCF): Cash is king for a good reason. Strong free cash flow means the company generates ample cash after covering its operational expenses, allowing for reinvestment or returns to shareholders. A FCF yield of 5% or higher is typically desirable. • Debt-to-Equity Ratio: While balance sheet strength may sound boring, it’s crucial. A low debt-to-equity ratio, ideally below 1.0, suggests a company is not overly reliant on debt to fuel growth, making it less vulnerable in downturns. Example: Morgan Sindall (MGNS) With a Return on Equity (ROE) of 22.7%, Morgan Sindall significantly exceeds the 15% benchmark, showcasing effective management and strong profitability. Its Free Cash Flow yield is an impressive 10.81%, well above the desirable 5%, reflecting robust cash generation capabilities. Furthermore, the company boasts a negative Debt-to-Equity ratio of -0.49, highlighting a strong balance sheet with no net debt and low financial risk. These qualities are also evident in its strong price chart (see below). MGNS Daily Candle Chart Past performance is not a reliable indicator of future results 5. Long-Term Trend Structure Just as analysing the strength of the overall market can create headwinds and tailwinds, you should also be mindful of a stock's price history and calibrate your expectations accordingly. An old adage that has stood the test of time is, “trends take considerable time and effort to change.” This doesn’t mean you should buy stocks that have undergone prolonged underperformance, but it does mean you should be cautious and aware of a stock’s long-term trend when making decisions. Example: Marathon (MARA Holdings) A quick look at Marathon’s daily chart shows prices oscillating around the 200-day moving average, indicating a period of indecision. The trend lacks clear direction, with momentum appearing tepid at best. Given the uncertainty, investors should be cautious about taking trend continuation or momentum trades here until a clearer signal emerges. MAR Daily Candle Chart Past performance is not a reliable indicator of future results Conclusion When it comes to stock selection, leveraging favourable market conditions, earnings catalysts, share buybacks, financial quality, and trend structures can enhance your investment strategy. By aligning your selections with these key factors, you can tip the tailwinds in your favour and increase your chances of success in the ever-evolving stock market. Disclaimer: This is for information and learning purposes only. The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance. Social media channels are not relevant for UK residents. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money.
Editors' picks
LSE:BARCEducation
by Capitalcom
2
CRDA - 3 months HEAD & SHOULDERS══════════════════════════════ Since 2014, my markets approach is to spot trading opportunities based solely on the development of CLASSICAL CHART PATTERNS 🤝Let’s learn and grow together 🤝 ══════════════════════════════ Hello Traders ✌ After a careful consideration I came to the conclusion that: - it is crucial to be quick in alerting you with all the opportunities I spot and often I don't post a good pattern because I don't have the opportunity to write down a proper didactical comment; - since my parameters to identify a Classical Pattern and its scenario are very well defined, many of my comments were and would be redundant; - the information that I think is important is very simple and can easily be understood just by looking at charts; For these reasons and hoping to give you a better help, I decided to write comments only when something very specific or interesting shows up, otherwise all the information is shown on the chart. Thank you all for your support 🔎🔎🔎 ALWAYS REMEMBER "A pattern IS NOT a Pattern until the breakout is completed. Before that moment it is just a bunch of colorful candlesticks on a chart of your watchlist" ═════════════════════════════ ⚠ DISCLAIMER ⚠ Breakout Area, Target, Levels, each line drawn on this chart and any other content represent just The Art Of Charting’s personal opinion and it is posted purely for educational purposes. Therefore it must not be taken as a direct or indirect investing recommendations or advices. Entry Point, Initial Stop Loss and Targets depend on your personal and unique Trading Plan Tactics and Money Management rules, Any action taken upon these information is at your own risk. ═════════════════════════════
LSE:CRDALong
by TheArtOfCharting
9% up since we tipped it on the 27th of September....And more to come... Broke above a key line of resistance today during our latest bit of fun just as it did on the spike last week. Hopefully next week we stay above this line and turn it into a line of support. Other notable signs pointing towards a continuation are decent RSI strength with someway to go before it's overbought, MACD trending bullish, STOCH sharply upturning from oversold and the share price has now closed above the 20, 50 and 100 day moving averages for the first time since the 1st of August. We increased our position by a third today to take advantage of what is hopefully a strong continuation.
LSE:OCDOLong
by Plat_Hunter
1
Currys PLC** investment opportunity ** On the above 12 day chart price action has corrected 90% since 2016. An excellent long opportunity. Why? 1) Price action and RSI resistance breakouts. 2) Price action on macro support and resistance. 3) Strong bullish divergence as measured over.. 4) Some other stuff, will say elsewhere. Is it possible price action falls further? Sure. Is it probable? no Ww Type: Investment Risk: <=6% of portfolio Timeframe: Be long before the summer turns to Autumn Return: Will say elsewhere Stop loss: Will say elsewhere
LSE:CURYLong
by without_worries
12
Alpha Group - What next post-earnings and CEO sucession plan?My take on Alpha Group: Alpha Group LSE:ALPH leads, in my view, as the UK's best FXRM firm, and institutional lending provider. What most lenders don't do is take a mixed approach - both expertise and technology when developing and implementing their services. From a macro perspective, Alpha Group provide stronger growth prospects than peers, as well as higher margins. They are continuously making large investments into their infrastructure, expanding their already strong platform. Analysts ests. momentum continues to be strong, due to the cheap valuation (despite the inflated NII). The acquisition of Cobase had provided an additional vector of growth for the company, and will continue to do so into the future. Presently, and historically, Alpha Group have always displayed a super solid balance sheet, indicating mgmt. are in control. Buybacks are continuous, with £20m now completed in this year alone, leaving them with a huge cash position, over £180m. And, as we all know by know, interest rates are dropping globally! Slowly, but surely, we will come down to a more modest cost of borrowing, and Alpha Group are a major beneficiary of this. 4th September 2024 - 1H24 results • Total income up 19% yoy to £107m. Revenues at £64m, a 16% yoy rise. 1H underlying EBITDA @ £25.3m (39.4% margin), surpassing PH’s estimate of £23.3m. • Additionally, an increase in net client additions and revenue per client. Corporate FXRM client base grew by 9% yoy, and institutional FX client numbers rose 11% yoy. • Cash up again! Now sitting on £180m at the end of the first half. Buyback on track, now with £20m completed. • As at 04/09, trading at approx. 6x ‘25e EV/EBITDA and an 8% FCF yield, still suggesting good valuation for buying. 10th September 2024 - CEO Transition & Succession - Alpha Group announced today that Morgan Tillbrook, CEO, has decided to step down from his duties at the company. - He will continue his role up until the end of the calendar year, where he will then be succeeded by Clive Khan. - Clive is currently Chairman at Alpha Group and is also the CEO of takepayments. takepayments was recently acquired by Global Payments NYSE:GPN , which I believe provides perfect timing for Clive to step down as CEO and step up for the role at Alpha Group. - With over 30 years in the FX and payments industry, there's no real better option than Clive, as his philosophy is almost identical to Morgan's. - He transformed takepayments from a failing bill payments business into one of the leading card acceptance businesses in the UK. As for Morgan, he too has a history of angel investing. - I anticipated a potential move for Morgan, as his long history of angel investing gave me a "heads up" to his absence. - At the open on the 10th, the markets felt disappointed and surprised, causing the stock to drop c.10% on the day. - However, Morgan made absolutely clear in his formal announcement that he will be leaving the business primed for further exponential growth and equipped with a robust business model. He emphasised that Alpha Group cannot be left in better hands than Clive, and I believe there is no reason to expect a rough transition in the step-up for him.
ALong
by FytaLO
HE1 Outlook (12/09/2024) (Log)HE1 engages in the exploration and production of Helium Gas. As of present, it has been an extremely volatile AIM play, peaking at 25p and bottoming at 0.185p. Fortunes have been made & lost. Now, onto the analysis. I am NOT a fan of using log over linear, as I find it to be less reliable, hence most targets are based on the red horizontal lines, with the trend patterns as supporting evidence to inform/estimate intersections. As of today (12th Sep 2024), I expect a pump to what I call the bag holder line. I then expect a slow sell off to around 3 to 4 pence (assuming no stock splits occur). I expect this target to be hit around September 2025. Then, from there, we may truly have lift off. Let's see how it plays out!!! Not financial advice - Just a bit of fun.
LSE:HE1
by pleasedApple81507