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BID CORPORATION LTDBID CORPORATION LTDBID CORPORATION LTD

BID CORPORATION LTD

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Our opinion on the current state of BIDCORP(BID)Bidcorp (BID) is a diversified international food company which operates in 34 countries around the world. It was spun out of Bidvest in June 2017 to release shareholder value. We see this as a solid blue chip, rand hedge share which should perform well. About 95% of its income is generated outside South Africa. Bidcorp focuses on the wholesaling and delivery of what it describes as "fit-for-purpose" product ranges which it says will continue to grow strongly. In its results for the six months to 31st December 2023 the company reported revenue up 24% and headline earnings per share (HEPS) up 18.6%. The company said, "Europe produced an excellent performance under the circumstances both in terms of revenue growth and margins, with almost every business showing solid growth. Australasia’s revenue growth moderated however both Australia and New Zealand delivered strong trading performances. The UK delivered good volume growth from the prior contract wins and acquisitions although profitability was impacted by lower margins and higher costs. Emerging Markets benefited from a strong performance from our South African businesses, however, the negative macro in Greater China impacted the half-year outcome." In an update on the 10 months to 30th April 2024 the company reported sales up 8.8% with weighted average food inflation of 2.6%. The company said, "For YTD to April 2024, the group made a pleasing EBITDA before IFRS 16 margin of 5.6% of net revenue, similar to an exceptionally strong comparative F2023." Obviously, this company is highly diversified and has made a speciality of acquiring "bolt-on" companies to grow. Technically, the share was in a steady upward trend until June 2023. Now after a period of sideways movement it has entered a new upward trend. It is on a P:E of 18.66 - which is an indication of its blue chip, rand-hedge status. We expect it to continue to perform well, benefiting directly from the general recovery of the world economy.
JSE:BID
by PDSnetSA
Our opinion on the current state of BIDBidcorp, having been spun off from Bidvest in June 2017, stands out as a diversified international food company with operations across 34 countries, marking its prominence in the global foodservice industry. The strategic move to separate from Bidvest was aimed at unlocking shareholder value, a goal that appears to have been successfully achieved, given the company's robust performance and solid reputation as a blue-chip, rand hedge investment. Remarkably, Bidcorp generates approximately 95% of its income outside South Africa, positioning it as a key player in the international market with a strong hedge against rand volatility. Bidcorp's operational strategy focuses on the wholesaling and delivery of "fit-for-purpose" product ranges, a niche that the company has effectively capitalized on, ensuring sustained growth and market penetration. For the six months ending on 31st December 2023, Bidcorp reported a 24% increase in revenue and an 18.6% rise in headline earnings per share (HEPS), showcasing its operational efficiency and the robust demand for its offerings across its diverse markets. The company's performance highlights include an exceptional showing in Europe, where nearly every business unit reported solid growth in both revenue and margins despite challenging conditions. While revenue growth in Australasia moderated, Australia and New Zealand continued to deliver strong trading performances. The UK market saw good volume growth, attributed to previous contract wins and acquisitions, though profitability was somewhat affected by lower margins and higher costs. Emerging Markets, including South Africa, contributed positively to the overall performance, although challenges in Greater China somewhat impacted results. Bidcorp's strategic approach to growth through acquiring "bolt-on" companies has further strengthened its market position, enabling the company to expand its footprint and diversify its revenue streams effectively. From a technical perspective, Bidcorp's share price exhibited a steady upward trend until June 2023, followed by a period of sideways movement before entering a new upward trend. Currently trading at a P/E ratio of 21.24, the company's valuation reflects its status as a blue-chip, rand-hedge entity, indicative of investor confidence and the anticipated continued performance. Given the general recovery of the global economy, Bidcorp is well-positioned to leverage its international presence, diversified operations, and strategic growth initiatives to continue delivering strong financial results. Investors looking for exposure to the foodservice sector and seeking a reliable rand hedge investment would find Bidcorp an attractive proposition, aligning with expectations for its sustained success in the international market.
JSE:BID
by PDSnetSA
BID: All-Time HighsBID Bid Corp | The share reached an all-time high on Friday with a print of 47807c. The positive price action development is welcomed considering that clients were alerted to the potential for new highs on 09 January at a price of 41598c (pre-market). Friday's pre-market technical rating for the share showed an OVERBOUGHT condition (see Friday's technical summary), with the Tactical Trading Guide also stating the following for the short term: "Aggressive biying but overbought on the lower time frame. Expect a consolidation or a minor retracement". Friday's candle structure may be reflective of this reading with a 'dark cloud cover' candle formation being printed by the close of the session. Bottom Line: Following the expansive move from 41598c (+14.9%), the buy/long reward-to-risk is less favourable. The original buy/long was published at ~R280 on 03 October 2022 (see attached).
JSE:BID
by techpers
BID: seize the opportunity to buy in a dip?A price action above 42500 supports a bullish trend direction. The blue circle indicates the optimal entry point during a pullback. Increase exposure for a break above 44800. The target price is set at 46300 (full retracement of the Fibonacci levels). The stop-loss is set at 42300. Remains above its 200-day simple moving average, which is regarded as bullish. The dotted trendline indicates a change in sentiment from bearish to bullish.
JSE:BIDLong
by Peet_Serfontein
Bid CorpA chart from this morning's research. For research insights, including trade ideas, get in touch today. Wednesday 25-October-2023, 06h30 Bid Corp (BID, 40966c). The share has traded in a well-defined range, with support (buying interest) at R400 and resistance (selling interest) at R435. It is unknown whether the share will hold the R400 level, however, the following is observed: (1) the share has shifted below it's 50-day exponential moving average. The 50-day EMA has also started to turn lower (2) The 3-Day MACD is above the centre line however has a negative alignment (MACD in blue is below the Signal line in orange). Also noted on the MACD is the MACD line looking to cross below the centre line for the first time this year. The last interaction with the centre line was a bullish crossover in late November 2022. One scenario is that the share could rally into the declining 50-day EMA which could act as a resistance zone/selling area. A breach and close below the R400 level could open R386 and R373.
JSE:BID
by techpers
BIDCORP - 200dma 🧐The stock reached a short term high of R460 before coming off the boil . (overbought RSI) Price is now returning to a previous level of interest and the upsloping 200dma . It will be important to see where the buyers step in here and if the previous support holds. The 200-day moving average is a technical indicator used to analyze long-term trends. It’s a line that represents the average closing price for the last 200 days. It helps traders identify whether the trend is up or down, and potential support or resistance areas. When the 50-day SMA crosses below the 200-day SMA, it’s called a “death cross,” signaling a bear market. Conversely, when the 50-day SMA crosses above the 200-day SMA, it’s called a “golden cross,” signaling a bull market.
JSE:BID
by Trader-Dan
Bidcorp- Reversal in playAfter a strong reaction to their earnings release, it looks like traders are taking some money off the table. Momentum has shifted from over-bought conditions and we can clearly see the sellers are in control at the moment. To what extent the pull-back will continue is anybody's guess but at just about a 21 PE, I suspect the stock is probably on the expensive side now. Short sellers can look for an pull-back to the 50 Day MA which I currently peg at R420.00 per share. Leave yourself some room for a stop loss at R460.00.
JSE:BIDShort
by RobbyP
BidCorp overbought, set to breathe down to R360 after dividends.JSE:BID met resistance at R358 in Nov 2019 which was momentaliry broken to R361 in Feb 2022 and the break failed to sustain, however creating a higher swing low. This effectively painted an ascending triangle on the Weekly Chart, indication long term bullish sentiment. Resistance of this ascending triangle was strongly broken in January 2023 and price rallied to R446. Looking at the current price action, price rallied and painted a mini rising wedge, Which was broken sideways in the form of a double top. With a juicy dividend payment set for 04 October 2023, and the Ex-date being 27th September 2023 the share price gapped to the upside and broke the double top's resistance, bringing the instrument into short term overbought conditions. With a market gap between R428 and R431, the instrument will need to maintain R431 as support, which is highly unlikely after the dividend payout. Taking into account that the instrument is far above the 50 Week EMA, the rising wedge which was painted and the double top which was violated with a gap, all these are ingredients for the "Bears Power Juice" to take price lower for a breather. The Bears will be woken up if price slips under R431 and the rising wedge's lows at R372 will be the first target for a retest of the Bulls' power and a bounce to the upside. The broken resistance around R360 will be the 2nd and last target. Overall sentiment is STRONGLY bullish over the long term, however those sentiments will be taken off the table if the Bulls are still sleeping beyond R358.
JSE:BIDLong
by Source_Sailor
BIDCORP - Onwards & UpwardsThis name keeps on delivering the goods and looks set for a continued move higher. Your stronger stocks will generally be above important upward sloping moving averages. A break of the high now targets R465 ... SL below R400 Trend trading is a trading style that aims to capture gains by analyzing an asset’s momentum in a particular direction 1. When the price of an asset is moving in one overall direction, such as up or down, that is called a trend. Trend traders enter into a long position when a security is trending upward. An uptrend is characterized by higher swing lows and higher swing highs. Likewise, trend traders may opt to enter a short position when an asset is trending lower. A downtrend is characterized by lower swing lows and lower swing highs.
JSE:BIDLong
by Trader-Dan
Our opinion on the current state of BID.Bidcorp (BID) is a diversified international food company which operates in 34 countries around the world. It was spun out of Bidvest in June 2017 to release shareholder value. We see this as a solid blue chip, rand hedge share which should perform well. About 95% of its income is generated outside South Africa. Bidcorp focuses on the wholesaling and delivery of what it describes as "fit-for-purpose" product ranges which it says will continue to grow strongly. In its results for the six months to 31st December 2022 the company reported revenue up 28,1% and headline earnings per share (HEPS) up 45,5%. The company said, "Currency volatility positively impacted the rand-translated results by 3,9%, with constant currency HEPS of 945,9 cents per share being recorded. Overall demand in the hospitality markets maintained the buoyancy seen in the latter part of F2022, assisted by inflationary impacts, but well surpassing pre-COVID-19 (COVID) levels". In an update on the 10 months to end-April 2023 the company said, "Our group trading results have pleasingly continued to achieve record levels in the four months period to April 2023, against the backdrop of the Northern Hemisphere winter across the UK and Europe and a few natural disasters which temporarily impacted some operations in various parts of the world". In a trading statement for the year to 30th June 2023 the company estimated that HEPS would rise by between 32% and 36%. Technically, the share remains volatile, and was in a steady upward trend before the COVID19 pandemic which is now resuming. It is on a P:E of 22,22 - which is an indication of its blue chip, rand-hedge status. We expect it to continue to perform well, benefiting directly from the general recovery of the world economy.
JSE:BID
by PDSnetSA