Wartsila possible bull movementHello!
The first "real" stock I have ever bought. Wuhuu! (for long term) 5th of january 2021
Had to make a small analysis about it ;)
Okay. So we can see from the left chart (weekly) how we have been under this supressing trend line from the year 2018, 30th of july. Price hit the trend line 4 times and the fifth time broke it. Atleast for now.
RSI has given us also this beatiful price action and a trend line which had been hit 4 times. Right now we can see from the chart that fifth hit seems like it's going to break it, so the trend might turn to bull.
On the right chart (daily) we can see 200 ema (red line) under the price and how the price used it as a support (other than before). RSI did also break the short time downward trend line.
This also gives me a bullish view. If we break them we might go lower.
(left picture) First target we need to break is that 9 euro resistance then we get good space maybe move towards 11,3 euro where there is again 200 ema waiting on us.
I don't think this is a good stock to trade, or maybe it is, but if you do take TRADES always use stop loss!
Otherwise you will get your ass burned.
-Jebu
Wartsila
WARTSILA CORPORATION | A Little Positivity And It Can Do 20%+Hi,
Wärtsilä is a Finnish corporation which manufactures and services power sources and other equipment in the marine and energy markets. The core products of Wärtsilä include technologies for the energy sector, including gas, multi-fuel, liquid fuel, biofuel power plants, energy storage systems and technologies for the marine sector, including cruise ships, ferries, fishing vessels, merchant ships, navy ships, special vessels, tugs, yachts, and offshore vessels. Ship design capabilities include ferries, tugs, and vessels for the fishing, merchant, offshore and special segments. Services offerings include online services, underwater services, turbocharger services, and also services for the marine, energy, and oil and gas markets. At the end of June 2018, the company employed more than 19,000 workers.
Keep an eye on Wärtsilä because technically it has reached to the possible bounce area. It is a bit mixed because fundamentally it is not the best - operating profit decrease, some bad coincidences and etc.
Let's see, how and if they would recover from it. If they do, then technically it is a perfect platform to make a bounce upwards because as said, technically this levels is pretty strong:
1) Monthly EMA200 should act as a support
2) Inside the marked area are 4 yearly highs, which now should act as support levels
3) 2x Fibonacci retracement 62%
4) The price has fallen from the all-time high to the golden pocket 47%-53%. Pretty often stocks make some kind of bounces just after they have reached inside the mentioned pocket.
All-time high ~20, current price ~10
5) The round number 10.000 and this is the key level.
10.00 is the key level because the plan starts to work right after we have seen a Weekly candle close or a Monthly candle close above of it!
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Regards,
Vaido
Wartsila share are at the lowest price for several yearsWärtsilä, also spelled Wartsila and Waertsilae is a company based in Finland. The company's main business is fitting out the entire engine rooms of large ships.
Their website describes the activity as follows: Wärtsilä is a global leader in smart technologies and complete lifecycle solutions for the marine and energy markets. By emphasizing sustainable innovation, total efficiency and data analytics, Wärtsilä maximises the environmental and economic performance of the vessels and power plants of its customers. In 2018, Wärtsilä’s net sales totalled EUR 5.2 billion with approximately 19,000 employees. The company has operations in over 200 locations in more than 80 countries around the world. Wärtsilä is listed on Nasdaq Helsinki.
Today, 18/7/2019, the company announced their half year results. The results were worse than expected. Orders missed by 5% on both divisions. EBIT missed by 16%.
The outlook was far from bright. They wrote: "The demand for Wärtsilä’s services and solutions in the coming 12 months is expected to be somewhat below that of the previous 12 months (previously in-line)." Analysts are estimating about 5% worse. The shares are down around 11% this morning to EUR 11.15.
We can expect a series of analyst downgrades in the coming weeks. This means the share price could well head lower. Prior to the results the shares had already been under pressure, trending lower since March 2019. In fact the share have been a broad based down trend since September 2017, when they traded at a peak of EUR 20.25 now they are EUR 11.15. Prior to today's results the shares had been under pressure after another Finnish company (Fiskars Corporation), decided to distribute its 5% stake in Wartsila as a dividend to its investors. The share were distributed in June 2019. It seems that those investors sold the Wartsila shares, depressing the share price.
Whilst it will take quite some time for investors to change their view, and there is little prospect of a share price rise, there are some investors who think new shareholders are getting quite a bargain.
1) dividend yield 4.4%
2) P/e ratio 15X (forecast for 2018)
3) Prospects for refitting engines due to modern pollution controls.
4) The company's leading position in a cyclical market could mean a strong price recovery when the economy improves.
The company's recent dividend isn't too bad, being more than 4% of the share price. The company paid a dividend of EUR 0.48 for 2018.
Is the dividend sustainable? Wärtsilä's says its target is to pay a dividend of at least 50% of operational earnings over the cycle. In the first half of 2019 the company had earnings per share of EUR 0.22 vs EUR 0.21 in the previous year. Usually the company earns more in the second half than the first half. With an EPS estimate for the full year of EUR 0.60 to EUR 0.80, it looks like the dividend for 2019 might be under threat.
At the end of the day, it looks like the shares are going to stay in the doldrums for quite some time until there are concrete signs of recovery. Looking at the chart, I reckon the downtrend can continue for a while. I would stay away.