$JSELEW - Lewis Group: More For Fundamentalists, Not Technicians
Lewis released a trading update for the nine months to December 2022 last Friday and the key takeaways were:
1.Widespread inflationary pressures, rising interest rates and record high unemployment levels curtailed consumer spending.
2.Retail trading patterns were significantly disrupted by electricity load shedding, particularly over the festive season.
3.Credit sales, which accounted for 58.3% (Dec 2021: 50.9%) of total sales, increased by 16.8%.
4.Cash sales declined by 13.5%, reflecting the mounting pressure on consumer disposable income.
5. For Q3'22: Credit sales for the three month period were 17.3% higher while cash sales reduced by 20.7%.
6.Collection rates strengthened to 82.7% for the third quarter (Q3 2021: 79.7%) and 82.0% for the nine months (Dec 2021: 79.1%).
The market had a knee-jerk reaction to the update as the share plunged almost 14% intraday before closing the day down at under -3%.
Technically there is nothing much to write about as this share does not have clear classic patterns or Elliott Wave count.
The share has been trading in a consolidation prior the trading update, finding historical resistance 5000-5500 zac range.
I see no clear technical signals so this one is more of a fundamental play.
1.Widespread inflationary pressures, rising interest rates and record high unemployment levels curtailed consumer spending.
2.Retail trading patterns were significantly disrupted by electricity load shedding, particularly over the festive season.
3.Credit sales, which accounted for 58.3% (Dec 2021: 50.9%) of total sales, increased by 16.8%.
4.Cash sales declined by 13.5%, reflecting the mounting pressure on consumer disposable income.
5. For Q3'22: Credit sales for the three month period were 17.3% higher while cash sales reduced by 20.7%.
6.Collection rates strengthened to 82.7% for the third quarter (Q3 2021: 79.7%) and 82.0% for the nine months (Dec 2021: 79.1%).
The market had a knee-jerk reaction to the update as the share plunged almost 14% intraday before closing the day down at under -3%.
Technically there is nothing much to write about as this share does not have clear classic patterns or Elliott Wave count.
The share has been trading in a consolidation prior the trading update, finding historical resistance 5000-5500 zac range.
I see no clear technical signals so this one is more of a fundamental play.
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