Logica LOG

[shelman]

Is this near oversold again 776/786 at time of posting or am i missing something?
Read this last week :-

Logica : Wins GPU Power contract
19/04/2001 08:40:36


 Logica
said today it has entered into
a 'multi million pound' contract with
GPU Power Distribution, which owns and
operates an electricity distribution
network, to deliver a new asset
management transformation programme.
Logica, which provides information
technology services, said the programme
will enable GPU to increase levels of
network performance with a lower
capital investment and a decrease in
operating costs.
The program will cover the areas of
data acquisition, performance
management, investment planning and
solution generating, Logica added.


 By Ben Winkley; 0207-842-9293
[email protected]

08:40 Apr 19 2001

Steve

 

[Riz]

Hi Steve,

Be careful with log...in spite of being oversold and the new contract you posted, city expects a profit warning following CMG's...though unlikely worth to wait till dust settles...

Riz

 

[shelman]

Hi Riz
Thanks for that. LOG have been at pains stressing their figures will be in line with city expectations and that they have an advantage over CMG in their global strategy.
It will be interesting how this pans out.
Steve

 

[Riz]

Up today +84 to 844. After reporting strong growth in its third quarter and predicted more of the same in the fourth...

Fortunately I managed to get in earlier at 754

Riz

 

[shelman]

Glad you were not too cautious Riz. I'd been waiting for another opportunity and got in soon after my post...not as low as you but i'm very happy all the same.
I'd decided anything sub 800 was safe and wanted to bring it to members attention without blatantly tipping it.
I was as certain as is possible about the trading statement being positive.
I'm still holding, with a very itchy trigger finger.
Good luck
Steve

 

[shelman]

Stock talk-Options : Bullish trade in Logica
26/04/2001 16:18:59


 Logica
options head the most active
stock options list with a couple of
bullish trades. One is to buy 2,800
lots and another to buy 2,500 Nov 2000
calls, both at 20p.
Selection of a relatively long-term
option implies uncertainty of when the
underlying shares will begin a
sustained advance.
Choosing out-of-the-money options
implies less concern about risk.
Stock is up 9.3% to 831p.

16:18 Apr 26 2001


Steve

 

[Riz]

Time to rewatch them?

Think it's time we started rewatching this baby at 945? Last time I got out at 988 for +234...I stopped watching them when they failed to hold above 1000 after testing it twice and forming double tops right there... interestingly at the same point both stochastics and RSI also headed back down...when techmark100 formed double tops at the same time...and Nas failed to hold above 2200...

So with the help of a bullish Nasdaq tomorrow breaking thorough 2200, I can't see any reason why LOG should not retest and break through 1000 heading for 1160...

In case of a negative Nas tomorrow of course we may easily see LOG testing 900 support heading for 850...

So that's how I am going to watch them, in conjunction with the Nasdaq performance tomorrow...

Riz

 

[Riz]

Thought it's best to have a chart here...

Riz

 

[Riz]

Now where did the chart go?

Riz

 

[Riz]

Down today -54.0 (-5.5) at 930 among new rumours that LOG is preparing to hit the market with a rights issue....

Watch this space if rumours denied again it might provide another good buying opportunity, if you're one of those looking to buy on the dips..

Riz
(no financial advice intended)

 

[shelman]

Thanks Riz
I'm very relaxed at the min, having no major open positions since last week. LOG is certainly one i'm watching and waiting for. Tomorrow will be interesting.

Steve

 

[shelman]

Computer services group Logica fell 54p to 930p on speculation it may ask the market for up to £800m to bid for BT-owned smaller rival Syntegra according to The Daily Telegraph. Logica is believed to be among a number of potential bidders to have expressed an interest.

 

[Riz]

Still watching this one with a view to get in at the right time...rumours on rights issue to buy BT's synegra seem to slow down...

I still need to see LOG to deny the rumours or a sign that they are not true..

This quotation from Saqib Mir's Chart Breakers on Friday, June 1, 2001:
"Logica (LOG - news) has also been another victim of tech stock warning fallout with a sympathetic markdown being seen at 875p. In this case, the weakness may be limited to May lows around 850p. This could then set the scene for a return to £10, which represents the best of what we saw last month."

Riz
(no financial advice intended)

 

[Riz]

This from
http://www.sunday-times.co.uk/news/pages/sti/2001/06/03/stibusnws01037.html?
might help with worries over rights issue...

Riz

 

[shelman]

So we're back to status quo... when to get in ?... will the Nas take off again ? My gut feel is that it will but great care is needed, this could still surprise us.
Steve

 

[Riz]

I concur, Steve...I'd rather have them a bit lower, but it now seems less likely with Nas closing up on friday, RSI and stochastic K signalling a possible bounce...I'll be watching LOG closely tomorrow on the basis of L2 and Nas futs...LOG only pays a lot when you precisely time your trade...

good luck

Riz

 

[shelman]

I'm still not in.... down 30 at the min despite positive news :-

LONDON (AFX) - Logica PLC said it expects earnings per share growth for the
year ending June 30 2001 to be in line with market expectations, adding it also
sees strong revenue growth and margin improvement.
Logica said it expected to achieve a book to bill ratio of in excess of
1.15:1 for the current year, which helped underpin its confidence in the future.
In an announcement ahead of its analysts briefing today, the software and IT
services group said it expects the year to be "another one of strong revenue
growth and continued margin improvement with organic revenue growth continuing
the tempo achieved in the first half."
Logica added it expects to achieve continuing strong organic revenue growth
in the first half of the next financial year, with further steady margin
improvement and strong EPS growth.
However, it cautioned that its mobile networks business is not seeing "the
stellar growth rates" of the recent past.
But group finance director Andrew Given stressed that mobile networks
operations "remain powerfully positioned globally and is by far the fastest
growing business organically, with sequential and year on year growth
continuing."
He continued: "With the other businesses expected to accelerate in the first
half of next financial year, our overall portfolio of businesses will continue
to deliver superior performance."
bge/rn

Steve

 

[Riz]

Steve, they are briefing analysts right now..if you're around see what their reaction is after the meeting and consider a position accordingly...

Riz

 

[Riz]

Up +24 (2.5%) to 970 as:

Yesterday's upbeat trading statement from Logica (LOG - news) has prompted JP Morgan to upgrade its rating on the stock to "buy" from "long term buy". Also positive on the stock, Goldman Sachs has raised it target price on the software firm to £10.07 from 943p and repeated its "market perform" recommendation. WestLB Panmure has raised the stock to "market perform" from "neutral". Logica shares opened at 948p. (ukinvest)

Riz

 

[shelman]

OK Riz, thanks for that.
The market in general is making me very nervous. We seem, once again, to be lagging the US in realising the type of market we are in. The MMs of course know the answer and are accordingly manipulating prices to allow smart money to scoop up stock on the cheap. I may be wrong but we'll find out soon enough. I just don't have enough dosh to buy everything i would like to.

Steve