thus: time to reverse?

Riz

Experienced member
1,266 5
Thus seems to be attracting press and brokers' attention recently...starting with Dresdner Kleinwort Wasserstein, acc. to telegraph they've been a bear on thus since its floatation, looks like no more though, as they've upgraded it from reduce to add with a price target of 30p...

Another positive development attracting attention was the news that US fund manager Capital Group had taken a 4.2 per cent stake...this also raised bid speculations...as investment bankers started suggesting that other private equity houses, who consider some alternative telecom operators to be massively oversold, are looking to grab up stock in Thus...

It also appears that the majority of the selling by Scottish Power shareholders has now been completed, hence lifting the stock overhang...

Well those are the news, rumours, recommendations, etc...but as it's well known most members of this board dont just go alongside news or broker recommendations, best treat them as +/-ve news and base decisions on TA...

Chartwise, a classic recovery bottoming pattern appeared and followed by some upmoves on relatively very high volumes raising hopes of further recovery...both rsi and stochastics steeply ticking up after bottoming at oversold levels while 5 day MA about to cross over 10 and 24 seems to be acting as resistance...

If 20 broken up, brokers target of 30 will not be out of reach chartwise, further rises can only be considered depending whether the price uses 20 or 30 as its new basis...I personally wouldnt consider a long position unless 20 level broken up...

Finally there have been many occassions when telcos seemed to have bottomed, but at the end of the day disappointing the investors and falling further levaing many with burnt fingers.. I'd therefore treat this bottoming pattern too with a pinch of salt and keep in mind that telcos still not out of the wood as a sector..only having said that I'd put thus on my watch list as a potential long on the basis of TA and +ve news/rumours...

Riz
 

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Riz

Experienced member
1,266 5
Closed the day at intraday hod +3.25 (17.3%) 22, a very big advance in percentage...Notice the significant 20 level mentioned in my earlier post being broken through now...I havent traded them yet, but may seriously consider it if it settles above 20...

Break out and bullish indicators, chart pattern obvious on this one, worth to watch even more closely from now on...

Riz

(no financial advice intended)
 

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Riz

Experienced member
1,266 5
STOCKWATCH Thus higher as ABN Amro repeats 'buy' on above-forecast FY results
•Website •Fundamentals •Share Price (ISP users click here first )



LONDON (AFX) - Shares in Thus PLC were just higher -- and outperforming the market-- as ABN Amro repeated its 'buy' stance following full year results which the broker described as ahead of its forecasts, dealers said.
Once the effects of an accounting change have been removed, revenues came in at 292 mln stg and normalised EBITDA at 13 mln stg, compared to its estimates of 289 mln stg and 11 mln respectively, the broker said.
Furthermore, year-on-year revenue growth at its key business services operations were 10 pct better than expected -- up 40 pct from 36 pct at the third quarter stage, it added.
The revenue mix at its internet unit was also an improvement on expectations, ABN Amro said.
The broker added it does not expect any changes to the consensus forecasts to occur as a result of the accounting change, while management's 2003 revenue and EBITDA
forecasts are unchanged.


Still ended the day down -1.0 at 18.5...negative market sentiment plus sell on the news probably, whatever it looks like in the long run thus is on the right track so far...

Riz
 

Bill G

Member
92 2
It is hard to think that Thus can reverse with a forecast of £155m. loss in the next 3years.
A decreasing negative EPS in the next 3 Years, a turnover reaching saturation.
Competing against BT which is back to a local telephone system which has all the advantages
of being well established.
We take a risk with our money and I am sure there are better stocks on the market to risk our money with.
OK why do these analysts tip it?
 

Splitlink

Legendary member
10,850 1,232
You are only saying what I am thinking ! So why do we read analysts tips? Since I have been on the internet I have not bought a newspaper- not even the Ft.