Our opinion on the current state of ZEDA(ZZD)Zeda is a car rental company unbundled and spun out of Barloworld, with a fleet of 250,000 vehicles and 14 dealerships around South Africa. It holds the license for the Avis brand in South Africa. The company is 55 years old and listed on the JSE on 13th December 2022, with Ramasela Ganda as its CEO.
In its results for the six months to 31st March 2024, the company reported revenue up 19%, while headline earnings per share (HEPS) decreased by 15.8%. The company said, "Despite the challenging trading conditions, the EBITDA margin and Operating margin remained strong at 34.0% and 15.0% respectively, underpinned by a healthy and diversified mix of product offerings from both the rental and leasing businesses. The Net debt to EBITDA ratio improved from 1.6x in March 2023 to 1.5x in March 2024."
By November 2023, the share was showing signs of a new upward trend and trading on a P:E of 3.12, which looks like very good value. The company is benefiting from the problems at Transnet, which have caused many mines to transport their goods to port by road. Zeda has a fleet of rental trucks that have been impacted by the truck attacks on the N3 highway.
Given the current trading conditions and Zeda's strong margins, the company appears to be well-positioned despite the challenges. The low P:E ratio suggests that the share is undervalued, making it potentially attractive for investors. However, the risks associated with the transportation sector, including the recent truck attacks, should be carefully considered.
Investors should monitor Zeda's ability to maintain its margins and manage its debt while navigating the ongoing challenges in the transportation sector. If the upward trend continues and the company can capitalize on the issues faced by Transnet, Zeda may present a compelling investment opportunity.
ZZD trade ideas
ZZD.JSE Zeda Possible Inverse Head and Shoulders Pattern.Zeda is Printing a Possible Inverse Head and Shoulders Pattern which is Bullish.
By Switching to a Simple Line Chart removes the Candle Clutter to reveal the pattern.
The Chart Study should be self explanatory.
As always, please get a few outside Expert's Advice before taking Trade or Investment Decisions.
Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away.
Regards Graham.
Our opinion on the current state of ZZDZeda is a car rental company unbundled and spun out of Barloworld with a fleet of 250 000 vehicles and 14 dealerships around South Africa. It holds the licence for the Avis brand in South Africa. The company is 55 years old and listed on the JSE on 13th December 2022, with Ramasela Ganda as its CEO. In its results for the year to 30th September 2023 the company reported revenue up 12,4% and headline earnings per share (HEPS) up 17,3%. The company said, "The rental business grew its fleet to capture the increased demand in the corporate sector and the inbound market. The leasing business revenue growth was driven by a concerted effort to deliver on the strategy of growing heavy commercial fleet". By November 2023 the share was showing signs of a new upward trend and trading on a P:E of 3,41 which looks like very good value. The company is benefiting from the problems at Transnet which have caused many mines to transport their goods to port by road. Zeda has a fleet of rental trucks that have been impacted by the truck attacks on the N3 highway.
Our opinion on the current state of ZZDZeda is a car rental company unbundled and spun out of Barloworld with a fleet of 250 000 vehicles and 14 dealerships around South Africa. It holds the licence for the Avis brand in South Africa. The company is 55 years old and listed on the JSE on 13th December 2022, with Ramasela Ganda as its CEO. In its results for the six months to 31st March 2023 the company reported revenue up 20% and earnings per share (EPS) up by 27%. The company said, "The Car Rental business delivered solid revenue growth of 26% compared to the prior period. The Leasing business is very stable and remained resilient over a challenging period, with revenue up 6% year on year". In a trading statement for the year to 30th September 2023 the company estimated that HEPS would rise by between 15% and 20%. By November 2023 the share was showing signs of a new upward trend and trading on a P:E of 3,62 which looks like very good value. The company is benefiting from the problems at Transnet which have caused many mines to transport their goods to port by road. Zeda has a fleet of rental trucks that have been impacted by the truck attacks on the N3 highway.
ZEDA is Printing a IH&SZEDA is Printing an Inverse Head & Shoulder Pattern = Bullish.
After my previous Analysis, this is an update.
I've changed the chart to LINE so as to not show the Candle Clutter and make the Analysis easier to see.
Also added some Charting TIP's I use in-case you didn't know them.
Remember to use Stop-Loss Orders to minimise your Trading Risks.
Invest Wisely and Enjoy.
Regards Graham.
ZZD - Long IdeaThe stock has printed an interesting, inverted head and shoulders and its currently rising above the upsloping 20/50 ema's.
While bulls hold it above R10.90 , the bull flag is likely to play out but for a longer term horizon, a stop below R10 would be preferable. The pattern targets R16 eventually.
The inverse head and shoulders is a technical chart pattern that signals a potential trend reversal from a downward trend to an upward trend in the price of a security or asset 12. It is also called a “head and shoulders bottom” 1. The pattern resembles the shape of a person’s head and two shoulders in an inverted position, with three consistent lows and peaks 12. The pattern is identified when the price action of a security meets the following characteristics 1:
The price falls to a trough and then rises.
The price falls below the former trough and then rises again.
Finally, the price falls again but not as far as the second trough.
Once the final trough is made, the price heads upward, toward the resistance found near the top of the previous troughs 1. Investors typically enter into a long position when the price rises above the resistance of the neckline 1. A suitable profit target can be ascertained by measuring the distance between the bottom of the head and the pattern’s neckline and using that same distance to project how far the price may move in the direction of the breakout.
Zeda Resistance Breaks to the Upside.ZEDA Resistance Breaks to the Upside.
The Chart Shows the break-out.
There must be a catalyst:- I heard on the news that AVIS is also Popping.
No prediction as this early days.
I hope the trend continues for those Invested.
Comments and thoughts welcome.
Regards Graham.
