Bullish outlook SBS (Long) (Short/Mid/Long term)Please provide feedback and your opinion on the reaction.
"If you can make money selling water, you are a runner"
And by the way, this looks like an excellent investment.
Fundamental
- Good earnings growth.
- Positive earnings outlook.
- growth in book value.
- outperforms GDP.
Technical
- A large buyer is spotted moving the price.
- A lot of aggression on the 10-V/TWAP buy-side.
- Challenging new highs.
- Not much liquidity in the market currently making it look like a runner.
- A good trader could make a good Risk/Reward from this point.
Macro
- Region of activity is about to grow the coming 4 years according to NMF.
Strategic points
- Emerging market wich grows.
- Key player in a pure basic fundament need.
- Will not suffer from war/AI/market stress.
SBS/N trade ideas
COMPANHIA DE SANEAMENTO BASICO DO ESTADO DE SAO PAULO - SABESPCompany Description:
SABESP provides public water and sewage services to residential, commercial, industrial and governmental customers in the City of Sao Paulo.
Analysis:
1. Candles near strong support.
2. RSI Oversold.
3. MACD on its down side. Flashing black and may be losing its recent downtrend momentum.
4.Previous High isn't broken. However, I do see that price could be in its accumulation stage near support.
5. I see a W pattern forming.
6. Future 50/200EMA cross near future?
7. 4 Orange Solid Bricks. Momentum upside?
Looking for a price target of $11! Not Financial Advice. Always Do Research Before Decision!
SABESP: Are investors expecting bad 2020 results on March 25?TECHNICAL ANALYSIS
RSI-14 is almost going under 30-level boundary (change in trend is expected once this happens, what means going from downward to upward trend)
In the last week, sell volume has increased, specially on February 18 and 19.
Key support at 5.55-5.65
Besides, SBS is closing a triangle which could foster some volatility in its share-price.
FUNDAMENTAL ANALYSIS
Expected EBITDA 1577 and EPS 1.13
If results are better than expected, SBS will go up to test resistance level 12.34. If they are worse, then it could test next support level at 3.49.
In the meantime, it may look like investors are discounting bad 2020 results once they are issued in March 25. This psychological mindset may drag the price towards first support level at 5.55-5.65.
NEWS ANALYSIS
Bad news from SABESP: review of tariffs delayed until March 10
Last 9th of February, SBS announced it but now it looks like it's going to take more time. However, final results will still be issued on April 9, 2021.
XP Investimentos is optimist with the terms presented as they contain a positive calculus for SABESP.
SABESP incurred in emergency maintainances in Itaquaquecetuba, accidentally destroyed a gas pipeline in Taboão da Serra on February 19th and is now making some reforms in the mysterious Parque Sabesp Mooca (aka Parque Radialista Fiori Gigliotti) which was opened to the public in 2014 and most part of its 21200 m² are off-limits and no one knows why.
CONCLUSIONS
SBS may touch key support at 5.55-5.65 which means a buy in my opinion and then, once results are issued, if they are better than expected (or not that worse as expected), long-term perspective for the stock is bullish.
Buy $SBS - NRPicks Feb 14Companhia De Saneamento Basico Do Estado De Sao Paulo is a Brazilian water and waste management company. SABESP is one of the largest waste management companies in the world and the state of Sao Paulo is the majority shareholder of the company.
Waste management companies have certain revenues and could be considered as defensive. In the case of SBS, we have the advantage of low debt and positive net income. The company's revenues have declined due to the pandemic; however, in the long term it should show a recovery.
Fundamentals:
- Value
- 37.1% estimated net earnings growth over the next 3 years.
- ROE 13.8% vs. 7.7% for industry
- P/B 1.3x VS 2.9x industry.
Technicals:
- Price level below SMA 250-200-150
- Williams R% at -41% levels
- RSI (49) Neutral
- +3.8% average upside during the month
The stock price has pulled back to a key $7.29 level without clear fundamentals. At this point, the stock is showing a reversal and change of trend. Finally, the SMA indicator is favorable.
$SBS projected to have a neutral outlook$SBS earnings reaction was a Negative over reaction with the PEAD projecting a neutral outlook for the stock placing it in Drift C
If you would like to see the Drift for another stock please message us. Also click on the Like Button if this was useful and follow us or join us.
DECISIONS FROM MIDDLE OF COMING WEEK - SBS - 240MN - MY IDEAThank you for your likes! Very Appreciated! Please Share also to help as many people as possible. Enjoy!
_____________________________________________________
We observed that after a long run down the market have found some power to stop the fall.
The market now moves in a range. We observed that the tops are lowering while the bottoms are increasing and doing their pullbacks on an increasing support line.
Monotone movement up and down in this range will see its end during next week. Probability of seeing more explicit moves from the middle of the week. Maybe first signs will show up from Tuesday.
Decision:
-Line are broken and you follow the trend
-Wait until market reaches back the resistance line to enter Short on a pullback down or Long on a significant break up.
Question triggering the community:
- Is it the right time to buy Brazilian Share?
Leave your comments on what would be your answer?
Focusing on Regulated Utilities: Water stocksThis past week I have become interested in Utilities, more specifically, Water stocks. If you’re asking why or how would you invest in water then keep reading. If you’re wondering why would you invest in water, then let me explain. There is an increasing demand for water for various purposes such as personal, commercial and industrial use. Water is used to generate power in the majority of global power-generating entities and it is used extensively in agriculture. Freshwater supply is increasingly declining and the world population is increasing. There is no doubt that there is an investment opportunity here.
The water issues of Flint, Michigan may no longer be present in the News cycles, but I assure you they still haven’t solved the city’s water problem. Americans, among other countries with scares water supply need to wake up and realize that there is going to be significant scarcity in the coming decades. Sticking to the US alone, recent water quality reports have indicated that about half of US streams, akes and one-third of bays are polluted. Every year there is about 4 trillion Litters of untreated sewage, industrial waste and groundwater are introduced to US waters. The “quick shower” that we’ve become accustomed to every morning uses more water than a person would use in the whole day in a developing country. Get the picture? There is increasing demand, decreasing supply.
Water stocks are well liked by those who enjoy a safe and slow growth in addition to getting a healthy dividend. These stocks may not be as exciting as your Tech stocks, but they do provide stability. This stability is notably seen in earnings, cash flow, and their revenues. Furthermore, most utilities are highly regulated meaning that regulatory bodies set prices in such a way that companies can gain a reasonable amount of profit. This means that these companies are able to pass on their costs to the customers. With this notion in mind, they are almost guaranteed to be profitable.
I spent the last week digging around for various Water providers that could potentially provide a great investment opportunity. I think I have come up with a few great plays that could prove to be exceptionally profitable going forward to 2019.
We begin this segment with Companhia De Saneamento Basico Do Estado De Sao Paulo or Companhia De Saneamento (SBS). Companhia De Saneamento (SBS) is a Brazilian water and waste management company. In fact, they are one of the largest waste management companies in the world and Sao Paulo is their majority stakeholder. Companhia De Saneamento (SBS) provides residential, commercial and industrial services to consumers in Sao Paulo and other municipalities within the state. To put things in perspective, Sao Paulo has a population of more than 12million people.
SBS has seen a drop of more 50%from its all-time high of $16 and seen a 35%drop in the last 6 months. This drop in value could be attributed to various factors. One being that the Brazillian economy has been significantly volatile in the past year secondary to the election concerns and various other political issues. On top of the previously mentioned, SBS also has accumulated a considerable amount of debt.
Recently, SBS announced that they have made a deal with the authorities which render them free of paying a significant amount of their debt in return for services for 40 years. Now, the terms of this deal are exceptionally hard to understand as the news report contains a lot of lawyer-talk. However, this is great news for SBS since one of the major concerns has been debt for the company.
SBS: short term planSBS
Key levels: 7.26, 8.09, 9.90
Bullish above: 8.09
Bearish below: 7.26
With much healthier movement we are late to the party for SBS. We don't enter below resistance and with this small channel playing out right now entry will either occur after a pullback close to 7.26 or the reclaim of 8.09 resistance and use of it as support to push towards 9.90.
$SBS Consolidation PatternWeekly time frame shows breakout and pullback into range
daily timeframe show breakout of downtrend line and price consolidating in symmetrical triangle on lower volume showing no strong selling
establishing position on monday for breakout and using 3ATR as stop loss
monthly timeframe showing stage 2 mark up