NOAH HOLDINGS PLC SHORT TERM SHORT, SEEKING LONG
FUNDAMENTALS/FINANCIALS
Analysing the financials of this company, it is clear their assets are growing year on year between 10-30% and there revenues are also increasing. They seek to open branches in Canada, Australia and other discussed locations. As an asset management company, it is vital to ensure profits or "Revenues" are increasing whilst assets under management "AUM" also increase. China are currently seeking to invest outside of China as there are some restrictions. Chinese high net worth individuals are on the rise more than any other country in the world, this provides business for Chinese asset managers which also operate outside of China. NOAH HOLDINGS being listed on the new York stock exchange allow a further expansion over seas. NOAH HOLDINGS market cap is currently at US$1.78 billion with a P/E ratio of 20.28, which gives the Holding an estimated market value of US$36 billion. NOAH HOLDINGS also completed a repurchase programme of US$50 million, this demonstrates the commitment to it investors and potential growth in revenues and sales profits, it is also a possible sign of strength and shareholders optimism. Based on financial analysis, the fair share price is around US$28.00 per share, currently trading at a premium. If price does breach below this level I personally believe US$24.50 a share is a key holding level. To summarise, the financials and fundamentals around this company and the industry, economic standpoint is all very bullish. The company is healthy.
TECHNICALS/PRICE ACTION
As analysed on the chart, we have strong resistance around US$33.00 per share, we have a bearish harmonic formation with price bouncing on the upper channel line. An "ABCD" formation has been completed at the 1.318 extension level. The stochastic demonstrates overbought (in line with the financial analysis of price trading at a premium). There are multiple scenarios. However, my main position will be to enter long around US$28.50-US$27.00 per share (on Bullish PA confirmation), if price breaks below the channel and key holding level of US$25.00 per share then I will be out of this trade. However, as it stands from US$28.00 my target will be US$35.00 to US$40.00, possibly higher.
***PLEASE BE AWARE THIS IS JUST AN IDEA, IT IS NOT MY ACTUAL TRADE, I SEEK ENTRY AROUND THESE LEVELS IF PRICE DOES DEMONSTRATE BULLISH PA, THEN I WILL BE EXECUTING THIS TRADE. TRADE AT OWN RISK.***
Analysing the financials of this company, it is clear their assets are growing year on year between 10-30% and there revenues are also increasing. They seek to open branches in Canada, Australia and other discussed locations. As an asset management company, it is vital to ensure profits or "Revenues" are increasing whilst assets under management "AUM" also increase. China are currently seeking to invest outside of China as there are some restrictions. Chinese high net worth individuals are on the rise more than any other country in the world, this provides business for Chinese asset managers which also operate outside of China. NOAH HOLDINGS being listed on the new York stock exchange allow a further expansion over seas. NOAH HOLDINGS market cap is currently at US$1.78 billion with a P/E ratio of 20.28, which gives the Holding an estimated market value of US$36 billion. NOAH HOLDINGS also completed a repurchase programme of US$50 million, this demonstrates the commitment to it investors and potential growth in revenues and sales profits, it is also a possible sign of strength and shareholders optimism. Based on financial analysis, the fair share price is around US$28.00 per share, currently trading at a premium. If price does breach below this level I personally believe US$24.50 a share is a key holding level. To summarise, the financials and fundamentals around this company and the industry, economic standpoint is all very bullish. The company is healthy.
TECHNICALS/PRICE ACTION
As analysed on the chart, we have strong resistance around US$33.00 per share, we have a bearish harmonic formation with price bouncing on the upper channel line. An "ABCD" formation has been completed at the 1.318 extension level. The stochastic demonstrates overbought (in line with the financial analysis of price trading at a premium). There are multiple scenarios. However, my main position will be to enter long around US$28.50-US$27.00 per share (on Bullish PA confirmation), if price breaks below the channel and key holding level of US$25.00 per share then I will be out of this trade. However, as it stands from US$28.00 my target will be US$35.00 to US$40.00, possibly higher.
***PLEASE BE AWARE THIS IS JUST AN IDEA, IT IS NOT MY ACTUAL TRADE, I SEEK ENTRY AROUND THESE LEVELS IF PRICE DOES DEMONSTRATE BULLISH PA, THEN I WILL BE EXECUTING THIS TRADE. TRADE AT OWN RISK.***
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