martes, 15 de abril de 2014

04/15/2014 Trading Idea and forecast Bristol-Myers Squibb Co. BMY Last Price: 47.96$

04/15/2014  Trading Idea and forecast Bristol-Myers Squibb Co. BMY  Last Price: 47.96$

HI, Everybody. Today I want to analyse a pharmaceutical stock. As you know this sector and biothec are slowly deflating (well slowly...) Last week we saw how GILD went down like a stone. In my opinion the investors are a little scared with their investments in this sectors. So it´s probably  that in the short-term  we will see large swings in this stocks. They are very attentive to developments in research rather than the fundamentals of this companies.
Anyway, let´s see the techicals:
Supports and resistances:
S1: 46.76 S2: 44.43 R1: 51.92 R2: 54.47
The average target price of the analyst are:55.12$
P/E= 30.74 and EPS= 1.56
If we take a look on the fundamentals:
In 2013 the company decrease their growth sales in -7.01% and in 2012  other -17.05% the average of the last 4 years is -2.86% (Wow).
In 2013 The increase of EPS(diluted) was a 32.76% and the average of the last 4 years is +2.8%. It sounds to me like a roller coaster in the fundamentals. The free cashflow decreased a -82.98% in 2013. Anyway this companies can rebound with the results of their research.
Actually, the curve is below the 200 AVG and close to he S1: 46.76 And broke the uptrend on April the 7th.
The MACD is below the signal and below 0.
The RSI is at 31% and the stochastic barred on the oversold zone.
About Elliot waves: The stock is going to start the 4 wave ( in a downtrend) so it´s probably the stock will raise a little in the next sessions. However in my opinion the curve is forming a downtrend channel with the last relative low.
I recommend to wait it´s probably the stock will go more down.
Let´s see the buy interval: 
[43.86$;47.21] the middle point is 45.53$. The fundamentals and the technicals tell me to not buy until the price arrives to 45.53$ or lower. Then I´ll take a look into the pipeline of the company.
Once there, let´s see the targets:
TG1: 51.72$
TG2: 53.43$
TGext: 55.45$
Anyway stay alert with the news of the company. And please remember to click in some ads before you leave the blog in order to maintain this blog, thanks!
There´s the Chart: