Firstly, does WATR possess a high quality balance sheet and growth prospects on a fundamental level? YES!!
The company has $23m cash and $21m of borrowings, with FCF increasing from $6m in 22 to an estimated $7.4m in 23 and $9m in 24, owing to a reduction in CAPEX. The only thing I don't like about the balance sheet is the high amount of intangible assets, but,...
BATS is a company where its financial performance and robustness is not reflected by it's share price, mainly owing to investor sentiment towards the sector it sits within and the fear of ever changing regulation of its products. It is currently generating £8.5bn in free cash flow, more than enough to pay the annual dividend and please any accountant that the...
I have broken down my prediction from both a fundamental and technical point of view below:
Fundamental:
The German economy has been one of the largest underperformers in Europe since the invasion of Ukraine by Russia, with its GDP currently still 0.2% behind that of when the invasion first occurred. Economists are currently forecasting a strong recovery in...
Fundamental Point of View:
ViacomCBS has recently featured heavily in the news due to it's $3bn stock offering, resulting in a large sell off which has had a role to play in the misfortunes of some hedge funds. Ignoring the misfortunes of Archegos Capital Management, ViacomCBS successfully raised $2.65bn at $85 a share. ViacomCBS now has a significant opportunity...
Airtel Africa has been in an uptrend since May 20 and has been forming bull flags with a following period of consolidation. This has happened twice in the current uptrend with each upward thrust followed by consolidation which forms an ascending triangle pattern. Price has just broken out of the 83p resistance and has since moved higher. Look for a retest of the...
Alibaba has been in an ABC correction pattern which looks set to hit the strong support line at $200. This line has acted as support five times in the past, therefore shows that it is a well traded area. Consolidation and reversal should be expected at $200, with a break below this level signalling a significant breakdown in the bull case for Alibaba.
