Riding the post-Covid-19 recovery by investing in this share could be a good idea, especially in light of the half-year data and the words of the group’s president.
The data relating to the first six months of 2020, in fact, show a substantial keeping of the accounts. The first six months of 2020 saw Sabaf’s revenues increase by 4.5% to 78.2 million thanks above all to the contribution of CMI, of which it holds 85% of the capital. On equal terms, however, there was a 12.5% contraction in revenues. However, the group managed to maintain an Ebitda margin at 17%, also thanks to actions aimed at improving efficiency. Furthermore, while maintaining a good financial situation, the group continues its dividend distribution policy. The next one, equal to 0.35 euros, will be paid on 14 October.
The group president said
“Organic growth through product innovation and partnership agreements with major players in the household appliances sector, intense M&A activity to strengthen in the sectors in which we already operate or in sectors adjacent to the core business, expansion of the industrial footprint”.
There are, therefore, all the conditions to ride the post-Covid-19 recovery by investing in this share.
Graphic and forecast analysis on the Sabaf stock
SABAF (MIL: SAB) closed the session on 1 October at € 12.95, up by 0.78% compared to the previous session.
As can be seen from the following charts, the current trend is bullish in both the medium and long term and the bullish potential is around 50% of current levels.
Although the stock is destined to grow with high probabilities, we must never lose sight of the levels below which the trend would turn into bearish. The levels to be monitored are 12.178 euros and 11.243 euros, respectively on the weekly and monthly basis.
Weekly time frame
Sabaf: bullish projection underway on the weekly time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. The volume for each price level is shown on the left. The middle panel reports BottomHunter’s signal. The minimum on the considered time frame is marked when it is equal to 1. The lower panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average.
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Time frame mensile
Sabaf: bullish projection underway on the monthly time frame. The red oblique lines represent the Running Bisector levels; the horizontal lines the levels of The New Law of Vibration. The volume for each price level is shown on the left. The middle panel reports BottomHunter’s signal. The minimum on the considered time frame is marked when it is equal to 1. The lower panel shows the volume traded for each bar compared with a 20-period zero lag exponential moving average.
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Deepening
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