Symbol: MSLH.GB

Won Europe Today

Posted on by Deepashree MC

We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:

  • European stocks fell 69bps in the past week, marking a fourth consecutive week of decline. Friday’s move concluded a week of choppy trading as investors digested strong earnings from the Telecom and Energy sectors as well as macroeconomic data including 0.4% q/q growth in Eurozone’s GDP and political developments in the U.S.
  • Leadership is continuing to narrow, with the number of stocks breaking out declining to 355. The number of stocks trading near the pivot of their bases has now slumped to 2,037 from 5,144 in late August.
  • The number of failed bases is concerning, as it surged to 1,219, the highest level since early August when the index had declined as much as 479.8 (-4.63%).

O’Neil Capital Equipment Sector Weekly

Posted on by Deepashree MC

YouGov (YOU.GB), a U.K.-based international research and data analytics group, announced mixed FY22 results for the year ended July 31. Revenue grew to £221.1B (+31% y/y), beating estimates by 3%, driven by double-digit growth across its data products, data services, and custom research segments. Adjusted operating profit improved 42% y/y, due to business efficiencies and operational leverage benefits, with an adjusted operating profit margin of 16.4% (+130bps y/y). It reported an adjusted EPS of 23.7p (+9% y/y), missing estimates by 12%, impacted by adverse foreign exchange movements. The stock continues to trade below its key moving averages and has fallen 50% off its 52-week high. It has an RS Rating of 18 and an A/D Rating of D-.

Won Europe Today

Posted on by Deepashree MC

We released our Weekly Global Laggards Report today. Click here to access the report. The stocks highlighted in this
report are laggards relative to their own domestic markets. We recommend that they be underweighted as they may be
vulnerable to further downside risk and underperformance. European names highlighted this week include Groupe
Bruxelles Lambert (GBLN.BE, GBLB BB), Whitbread (WTB.GB; WTB LN), Barry Callebaut (BARN.CH; BARN SW),
Danone (BSN.FR; BN FP), Baloise Holding (BALN.CH; BALN SW), and Kpn Kon (KPN.NL; KPN NA).

Won Europe Today

Posted on by Deepashree MC

Yesterday,

  • European majors retreated after five days of consecutive gains. The U.K.’s CPI print for July indicated that the
    inflation accelerated more than expected, to the highest in 40 years. We recommend a selective approach to
    adding risk. Focus on high relative strength ideas that are part of leading and/or improving industry groups.
  • The Stoxx 600 ended 0.9% lower on below average volume and currently sits 11% off highs. The index is trading
    above its short-term moving averages and 2.4% below its 200-DMA. Immediate resistance is at 445–47 levels,
    followed by its 200-DMA. Support for the index remains at its 21-DMA (1% below), followed by its 100-DMA (1.3%
    below), 50-DMA (4.1% below), and at ~400 (8.7% below). We want the index to retake the 445–47 levels and then
    its 200-DMA for a structural change.
  • Regional Real Estate and Retail stocks underperformed while Food and Beverage stocks outperformed.
  • Among major indices, the U.K.’s FTSE is trading above its key moving averages. France’s CAC closed below its
    200-DMA while remaining above all short-term moving averages. Germany’s DAX is trading below its 200- and 100-
    DMA.
  • Among the 17 indices we cover, most closed in the red. Germany, down 2%, led the decline. Two indices are in an
    Uptrend Under Pressure, three in a Rally Attempt, and 12 in a Confirmed Uptrend.
  • Actionable names in the Focus List include Edenred (EDEN.FR; EDEN:FP), Lvmh (LVMH.FR; MC:FP), Relx
    (REL.GB; REL:LN), Wolters Kluwer (WSG.NL; WKL:NA), Compass Group (CPG.GB; CPG:LN), Neoen (NEOP.FR;
    NEOEN:FP), Ipsos (IPS.FR; IPS:FP), Rwe (Xet) (RWEX.DE; RWE:GR), and Solaria Energia Y Medio Ambiente
    (SEM.ES; SLR:SM).

Won Europe Today

Posted on by Vidhya M

Yesterday,

  • European markets ended marginally in the red, after closing in the green in the previous three sessions. The
    declines came as Chinese stocks dropped on concerns over resurgence of COVID-19 in the country and fresh
    fines for tech giants. We wait for the major indices to hold the current levels and retake their short-term moving
    averages for a structural change. We recommend a cautious approach to adding risk but becoming more
    incremental is encouraged. Focus on high relative strength ideas that are part of leading and/or improving industry.
  • The Stoxx 600 ended 0.5% lower on average volume and currently sits 16% off highs. The index has retaken its 10-
    and 21-DMA last week.It is trading at the upper end of the consolidation base (400–418), where it has been trading
    in the last three weeks. Next resistance is at its 50-DMA (2.6% above), followed by 445 levels (7.3% above) and its
    200-DMA (8.7% above). Support for the index remains at ~400 (3.5% below). Automakers, Miners, and Travel &
    Leisure stocks underperformed, while defensive sectors like Health Care and Utilities outperformed.
  • Among major indices, France’s CAC and the U.K.’s FTSE have retaken their 21-DMA, while Germany’s DAX is still
    below its 21-DMA. All these majors are trading below their 50- and 200-DMA.
  • The 17 indices we cover closed mixed. Norway advanced the most, up 0.7%, while Ireland led the decline, down
    1.8%. Austria and Spain were shifted to a Rally Attempt from a Downtrend. One index is in an Uptrend Under
    Pressure, 10 in a Rally Attempt, and the remaining six in a Confirmed Uptrend.
  • Actionable names in the Focus List include Neoen (NEOP.FR; NEOEN:FP), Solaria Energia Y Medio Ambiente
    (SEM.ES; SLR:SM), Edp Renovaveis (EDPR.PT; EDPR:PL), Compass Group (CPG.GB; CPG:LN), Man Group
    (EMG.GB; EMG:LN), GSK (GSK.GB; GSK:LN), and AstraZeneca (AZN.GB; AZN:LN).

Won Europe Today

Posted on by Vidhya M

Yesterday,

  • European markets closed in positive territory after closing in the red for four consecutive days. Despite the stocks
    rebounding from the selloff, which caused multiple regional markets to reach two-month lows, concerns remain
    about a potential recession and the U.S. inflation data release on Wednesday. Volatility of oil prices continues as
    opposing forces are at play, with Chinese demand drastically dropping due to lockdowns but Russian supply
    continuing to be restricted. We recommend that investors remain cautious while adding names in defensive
    sectors with top RS Ratings.
  • The Stoxx 600 climbed 0.8% led by the Banking, Health Care, and Chemical sectors. Among other major indices,
    France’s CAC, Germany’s DAX, and the U.K.’s FTSE closed in positive territory, gaining 0.5%, 1.2%, and 0.4%,
    respectively.
  • Among the 17 indices we track in Europe, 16 closed in the green, with Luxembourg closing in the red. With no
    changes in market conditions, 16 indices are in a Downtrend and Portugal continues to be in an Uptrend Under
    Pressure. The average distribution day count stands at 5.0.
  • Actionable names in the Focus List include Aker Bp (AKEP.NO; AKRBP:NO), Elisa (ELIS.FI; ELISA:FH),
    Glaxosmithkline (GSK.GB; GSK:LN), and Novo Nordisk (NON.DK; NOVOB:DC).

WON Europe Today

Posted on by admin

We released our European Weekly Summary yesterday. Click here to access the report. Key points from it include:

  • The Stoxx 600 remains in a Confirmed Uptrend with four distribution days. Among the 17 indices we cover,
    Denmark was however moved to a Downtrend while Germany and Switzerland were downgraded to an Uptrend
    Under Pressure.
  • Last week, value stocks (+1.6%) led by Banks, Basic Material, and Energy outperformed growth stocks (-3.6%) by
    a large margin. The rotation toward value now seems extended on a three-month rolling price performance,
    suggesting a short-term pause in the value trade.
  • European Focus List Update: We added Rvrc Holding (RVRH.SE; RVRC:SS) and Jeronimo Martins (JMT.PT;
    JMT:PL). We removed Eurofins Scientific (EUF.FR; EUF:FP), Puma (Xet) (PUMX.DE; PUM:GR), Partners Group
    Holding (PGHN.CH; PGHN:SW), Dechra Pharmaceuticals (DPH.GB; DPH:LN), Vitrolife (VITR.SE; VITR:SS),
    Rentokil Initial (RTO.GB; RTO:LN), Sartorius Pref. (Xet) (SRT3X.DE; SRT3:GR), and Interroll (INRN.CH;
    INRN:SW).

O’Neil Capital Equipment Sector Weekly

Posted on by Gaghan

Volvo ‘B’ ( VOBF.SE; $35B market cap; $84M ADV ) plans to acquire JMC Heavy Duty Vehicles, a subsidiary of Jiangling Motors ( JAU.CN; $3B market cap; $44M ADV ) for SEK 1.1B. In 2020, Volvo had to import over 4,500 trucks into China, but this acquisition will allow the company to start production in China as it includes a manufacturing plant. Volvo could start production of its FH, FM, and FMX range of trucks in Taiyuan, China by the end of 2022. It might expand the plant’s annual capacity to 15,000 trucks in the long term. The stock has declined 19% from its 52-week high and is trading below its 50- and 200- DMA. It has a declining RS line with a low RS Rating of 30 and an A/D Rating of D-. Avoid.

Won Europe Today

Posted on by admin

Yesterday,

  • European markets edged up marginally as investors largely remained cautious, ahead of the minutes from the
    Federal Reserve’s July meeting. We remain positive on the overall market and recommend investors to add names
    breaking out from proper bases.
  • The Stoxx 600 continues to trade above its 10-DMA, in a Confirmed Uptrend. Travel & Leisure stocks led the gains,
    but luxury stocks remained under pressure. Mining stocks declined the most.
  • Among the other major indices, France’s CAC underperformed, breaching its 10-DMA, but volume was lower. The
    index avoided a distribution day. Germany’s DAX ended in positive territory on lower volume and is still trading
    above its 10-DMA. The U.K.’s FTSE lost 0.16% on higher volume.
  • Three out of the 17 indices ended in negative territory, with none recording a distribution day. Market status
    remained unchanged for all markets.
  • Actionable names in the Focus List include Airbus (AIRS.FR; AIR:FP), Halma (HLMA.GB; HLMA:LN), and DSV
    Panalpina (DSV.DK; DSV:DC).

Won Europe Today

Posted on by admin

Yesterday,

 

European markets continued to rally for the third straight session boosted by stabilizing interest rates in the U.S. All the markets barring three ended in positive territory but none recorded a distribution day. We would recommend investors to be patient and wait for stocks to form new bases before turning constructive.
The Stoxx 600 was upgraded to a Confirmed Uptrend after it reclaimed its prior high. It is trading well above its 21- and 50-DMA and 2.7% below its high of 433 last year. On the sectoral front, Auto (+1.08%), Chemicals (+1.79%), and Health Care (+1.03%) led the rise, while Heath Care and Travel & Leisure stocks ended in negative.
Among other major indices, the U.K.’s FTSE ended in the red and is still in an Uptrend Under Pressure. France’s CAC and Germany’s DAX gained, while trading above their 21-DMA and are in a Confirmed Uptrend.
Denmark continued to outperform gaining more than 100bps. Currently, nine out of the 17 markets are in a Confirmed Uptrend.
Among our Focus List names, Imcd Group (IMCD.NL; IMCD:NA) turned actionable as the stock broke out of a stage-four six-week flat base. Dsv Panalpina (DSV.DK; DSV:DC) and Straumann Holding (STMN.CH; STMN:SW) also turned actionable as the stocks broke out from their respective bases.
Other actionable names include Schneider Electric (QT@F.FR; SU:FP) and Teleperformance (ROFR.FR; TEP:FP).