[HOLD/BUY] Monotype
Updated
# Fundamental Analysis
## Long term debt
- On September 2016, Monotype got 110M on Long Term Debt. Goal: 2 acquisitions.
- On September 2018, the Debt decreased by 27% (80M).
## Buybacks
- During 2016, only 6M were invested in buyback.
- During 2017, only 6M were invested in buyback.
- During 2018, in the first 3Q, Monotype invested 7M on buyback. And we still pending the Q4 reports (we are going to see them on Feb 15)
^^^ This last item may be considered as a positive Balance Sheet
- We are expecting a 5M long term debt payment during 2018 Q4, resulting in a 75M long term debt.
## Balance Sheet
- On September 2018, Monotype has 70M in CASH, covering more than 90% of the Long Term Debt.
We expect, during Q4 report (publish on Feb 15, 2019), seeing a Long Term Debt 100% covered by CASH, and a Long Term Debt less than 20% of the Equity, resulting in some indicator changes (positive).
# Technical Analysis.
- In the short term, we can see some accumulations limits on 16, 16.25, 16.75. They may be related to some good expectations about next Q4 report.
- Value crossed a huge resistance line, after dealing with it during a whole week.
- On another hand, Monotype seems to be on the top of the canal. May result in a decrease in the value. If Q4 results are positive, it may change from SHORT to LONG.
- Price going up with no volume. It can be considered as good expectations for the Q4 announcement.
# Summarize
## Long term debt
- On September 2016, Monotype got 110M on Long Term Debt. Goal: 2 acquisitions.
- On September 2018, the Debt decreased by 27% (80M).
## Buybacks
- During 2016, only 6M were invested in buyback.
- During 2017, only 6M were invested in buyback.
- During 2018, in the first 3Q, Monotype invested 7M on buyback. And we still pending the Q4 reports (we are going to see them on Feb 15)
^^^ This last item may be considered as a positive Balance Sheet
- We are expecting a 5M long term debt payment during 2018 Q4, resulting in a 75M long term debt.
## Balance Sheet
- On September 2018, Monotype has 70M in CASH, covering more than 90% of the Long Term Debt.
We expect, during Q4 report (publish on Feb 15, 2019), seeing a Long Term Debt 100% covered by CASH, and a Long Term Debt less than 20% of the Equity, resulting in some indicator changes (positive).
# Technical Analysis.
- In the short term, we can see some accumulations limits on 16, 16.25, 16.75. They may be related to some good expectations about next Q4 report.
- Value crossed a huge resistance line, after dealing with it during a whole week.
- On another hand, Monotype seems to be on the top of the canal. May result in a decrease in the value. If Q4 results are positive, it may change from SHORT to LONG.
- Price going up with no volume. It can be considered as good expectations for the Q4 announcement.
# Summarize
Note
# Summarize1. If Feb 15 announcement is well accepted by traders, Monotype may cross the resistance line with more power, creating (maybe) a rebound.
2. If Feb 15 announcement is negative... Brace yourself.
From my point of view, option 1 has more chances to happen.
Note
1 day left for the announcement and volume is double than the previous days.Positive (on LONG) news.
Note
Pre-Market UP by ~7%Note
Market opens 1 hour after Monotype's announcement.Stocks jump +6% during the first 30 mins.
Target Reached.
Note
Due to the big jump, we may expect a correction (~ -3%) during next days.From my point of view, this rebound should be a good indicator of BULL Market during the next months.
Trade active
Monotype continues to rise.Currently, is on the top of the second big canal. We hope to see Monotype crossing it.
Note
Crossing canal. Everything green.Trade closed: target reached
Confirmed new Monotype tendency. 20% gain in 31 days
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