VHM trade ideas
VinHomes (VHM)- Long runVinHomes (VHM) stock has entered Phase C of the accumulation process, indicating a pivotal moment in the Wyckoff method. This phase is crucial as it often precedes a shift towards a renewed uptrend. During Phase C, investors might observe signs of strength as the stock begins to assert its readiness to move out of the consolidation zone. This stage is characterized by a test of support levels, without new lows being made, suggesting that selling pressure is diminishing and demand is starting to dominate. For traders and investors following the Wyckoff method, this transition signals an opportune moment to consider positions in anticipation of the next growth phase. It's a time when the market forces align, showcasing the potential for VHM to embark on an upward trajectory as it moves into the markup phase.
VHM (Vinhomes) Potential financial stressIndustry: Construction and Real Estate/ Real Estate Development/ Real Estate Development.
Vinhomes has Price to Book ratio at below 1 (0.96 on Friday 17/11/23)
Debt to assets ratio at 0.10 (10%)
● Definitely undervalue stock (cheap)
● Current Financial situation: High risk (also high reward)
Springate Score: If the value of the Springate score is greater than 0.862, the analyzed company is in a stable state. If the value is less than 0.862, it means the company might be under financial stress 1.
Current VHM's Springate Score: 0.63 < 0.862 indicate Financial stress
However the score has improve +14.36% since Mar 23
The Springate Score is financial ratio used to evaluate a company's financial health. The formula is:
Springate Score=0.1A+0.6B+0.03C+0.33D
Where:
A = Working Capital / Total Assets
B = Retained Earnings / Total Assets
C = Earnings Before Interest and Taxes (EBIT) / Total Assets
D = Equity / Total Liabilities
High risk for long position (short term-medium term)
Trading Diary: Sat 18/11/23
BUY VHMBuying price 45, target expected price 56 (25%), cut loss price 41.5
Reasons for bottom-fishing VHM: good basic products, cheap prices, Vietnam Investment Group registered to buy over 16 million shares (September 20 to October 20), foreign organizations actively bought VHM
VHM STOCK GO DOWN TO SUPPORTWITH ENDING DIAGONAL, SIGNAL FOR SHORT THIS STOCK after completing 12345.
We expect 80-85 to LONG.
