LiteForex - Analytics

    LiteForex

    807.00 7.50/10
    78% of positive reviews
    Real

    Analytical review of the stocks of E. I. du Pont de Nemours and Company on 16.03.2016

    E. I. du Pont de Nemours and Company, #DD [NYSE]
    Raw materials, Agricultural chemicals, USA

    Financial performance of the company:

    Index – DJIA, S&P 500;
    Beta – 1.82;
    Capitalization – 54.77 В;
    Return on asset – 6.80%;
    Income - 1.95 B;
    Average volume – 5.27 М;
    P/E - 30.06;
    ATR – 1.54.


    Analytical review:

    • Over the last two months company’s stocks have grown by 23%. It is expected that the rise will continue.
    • Company has a 1st place in the sector of “Agricultural chemicals” among the issuers traded in the American stock market.
    • At the end of January the company reported for Q1 of the fiscal year 2016. At the press-conference company’s management announced that company’s revenue fell by 9.4% to 5.3 billion USD due to strong USD.
    • According to press-release on the company in the reporting period, EPS (earning per share) amounted to 0.27 USD, which was above analysts’ expectation of 0.26 USD. However, considering restructuring costs of 622 million USD, the company DuPont has suffered the loss of 253 million USD during the quarter.
    • Company’s management expects significant rise in the net profit in the fiscal year of 2016 due to introduction of stringent program to reduce costs.
    • In last December the company started the process of merging with Dow Chemical, in the result of which a company with capitalization over 130 billion USD will be created.
    • Over 65% of company’s shares belong to institutional investors. The most part of the shares belongs to Capital World Investors (8.10%) and Vanguard Group (6.05%).

    Summary:

    • Despite negative report for Q4 of the fiscal year 2015, the company has growth potential. Due to successful merge with Dow Chemical the company will become the largest producer of chemicals and agricultural products in the world. Most part of shares belong to the institutional investors.
    • It is likely that in the near future company’s quotes will go up.

    Trading tips for CFD of E. I. du Pont de Nemours and Company

    Medium-term trading:
    the moment the issuer is traded in the range of 61.75-62.65 USD. If the price maintains these levels and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 1.5% of the capital, as the issuer has strong volatility. Stop order can be placed below the signal line. Take profit can be placed in parts at the levels of 64.50 USD, 67.00 USD and 69.00 USD with the use of trailing stop.


    Short-term trading: on the chart with the timeframe 15M the issuer is traded between the local support and resistance levels of 62.45- 63.15 USD. After breaking out and testing of these levels we recommend to enter the market. The positions can be opened near the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.



    To leave a comment you must or Join us


    By visiting our website and services, you agree to the conditions of use of cookies. Learn more
    I agree