So here we are, the panic price drop caused by COVID-19 is settling down and the shareholders already realized how much they lost during the crisis (the realization is completely tangible after the previous earnings report (the arrow)).
It seems like the downtrend is slowing down and probably looking for reliable support to start its way north. We are seeing higher lows and if the price stays the same over the weekend (or opens up higher on Monday), moving toward future resistant bands is expected.
From the fundamental standpoint, the company is already limiting its production (and thus its costs) because of the lower demands. Many of their smaller sites are closed. However, this won't be the case for a long time. Even if no vaccine or treatment is found in the next months, the governments will find a way to start the economy engine (sooner or later) even if it means playing Russian roulette with people's lives. More liberal governments (like Canada) will probably postpone the opening as far as possible (to protect its people), but at some point (assuming no treatment/vaccine is found), a change of plans (such as deploying herd immunity, like Sweden) is expected. In that case, it may take months (not forever) for the market to bounce back.
Let me know what do you think about this subject in the comments below:
P.S. Expected Earning for June is already negative (unlike the past two). This means that there is a possibility that the actual earnings will be higher (because it already lost big in the past months), and thus an uptrend may start soon.
For the short term, yes. You kind of missed the 25% rally this week. Today hedge funds pushed to changed the CEO and move from oil and coal to other segments. However, this is more about attracting investors to increase the share price. I would suggest waiting and observing what will happen. If you decide to get in a long, wait for a strong support to do so. Check out this quote taken from Yahoo:
“We agree that Teck had traded below its potential,” Jackie Przybylowski, an analyst with BMO Capital Markets, said in a research note. But a major shakeup to the portfolio “is likely to be high risk, and costly.”
jjactual
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good insights. Is it a good time for me to go in now? or am i too late to the party and wait a bit?
Check out this quote taken from Yahoo:
“We agree that Teck had traded below its potential,” Jackie Przybylowski, an analyst with BMO Capital Markets, said in a research note. But a major shakeup to the portfolio “is likely to be high risk, and costly.”