The Tiger cannot change its stripes


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Categories : Trading Ideas , Uncategorised



The Tiger cannot change its stripes by SchalkLouw on TradingView.com

 

After a few years which Tiger Brands would surely like to forget, it seems like the both the company results and share price, have found quite a strong support. Fundamentally the company is sound, with both PE’s and Price/Books trading at 5-year lows. After recent results, it seems like the growth (ROE) in the company has also made a turn for the better (above 8% again). Debt levels are also still extremely low. The lingering listeriosis Class Action lawsuit could be a risk, but Tiger Brands informed shareholders that it intends to defend the Class Action.

Technically the company look very interesting. Price is trading above the flattening 50-day moving average, with main resistance level currently laying at top of the diagonal resistance line (at R217). A break and close above R217, brings September 2019 levels of R227.50 into play, with the 200-day moving average at R242.20 being next resistance level . These levels coincide very nicely with our target price (fundamentally) of R250 on the company. Download and read our full report” CLICK HERE

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