Anybody have any comments on share Reuters (RTR.L)?

[ndz]

Dear all:

Recently, RTR doesn't show any upside sign. Anybody has any comments on this share? It should be better than before but it dropped sharly when it released its quaterly report although the results are better than expected. Any people who is playing this share have an optimistic view on it?

Thanks
ndz

 

[cas01]

My view is that the quarterly results were only better than expected in that recurring core revenues were ONLY down 8.4% compared to the company's forecast of a 9% decline. Also they think these revenues are still going to decline by 6 to 6.5% in the second half. This is the problem with Reuters; its core business is in structural decline on the back of falling user demand and increased competition (from Bloomberg, the internet, etc). Plus, on my numbers, the stock is still trading on a P/E of 26x (2005 earnings) and there is no income growth; so it's not cheap.

Having said that, RTR is a very high beta stock, so it should be dragged up if the market advances (mind you betas do change with time). The 50 day EMA has provided support to the price over the last three months, so I might have a look at the shares (on a bull tack) if they get down there again (about 380).

 

[ndz]

Thanks

Cas01:

I quite appreciated what you analysised. I think you are quite right on this share. Initially I always though it should go up. Now it is in a wrong direction. Anyway, thanks

regards
ndz

 

[olwenh]

Just had a look a this after reading your post.

It's hit a big resistance area going back to 1995 & 1998. I imagine it would take something special to push it up through this. I might watch it on level 2 & see what the sentiment is.

edit: to me it looks like a double top & a short, but don't take my word as I often get these things wrong.

 

[olwenh]

ndz,

I'm a very short term trader, so please don't let anything I say influence you, especially if you are holding these longer term.

Longer term they seen to have made a good recover - but I'm no good at reading longer term charts.

 

[ndz]

Quite appreciate on your comments.

Dear Olwenh:

Your analysis is quite promising. I will keep an eye on it. Very interesting. You are quite good at RTR.L Because You can even trace back to 1995 and 1998. I think I can trust you.

Thanks
ndz

 

[olwenh]

ndz,

thank you, but trusting someone else isn't what trading/investing is about.

1st of all you have to decide if you are a trader (short term) or an investor (long term).

I only know about trading and you must decide, if the market goes against your trade at what price you will decide you were wrong and get out of the trade. This price mustn't be a level where you would get hurt too badly.

In a nutshell, you should only get into a trade if you 'stop' is fairly close so that the cost of being wrong isn't too painful.

That's why I would see rtr as a short right now as the 'stop' isn't too high up.

good luck

 

[techtrader]

IMHO
From support at 07/01/004, 33/03/004 and 22/04/004. resistance from 18/02/ 004 and 20/04/004 I see a triangle formation. I personally would wait until a breakout either to the upside, confirming the uptrend or to the downside.
Regards
Dave