#France #Germany There’s a saying, “The Market Always Knows” and visually there can be few shares where this isn’t more evident than Lookers. Considering since 2009, the company has never declared less than £30m profit before taxes, at the end of 2015 something started to go very wrong with their share price. And when it slipped below 106p back in 2017 , the writing was pretty much on the wall for what was to come.
At the start of July this year, the company took the unusual step of suspending trading in their shares, due to an audit discovering a £300,000+ fraud which was appears to be the tip of a very expensive iceberg. Their results, finally revealed, show a loss of £46m in 2019 and of course, this was last year. Given the damage to the motor trade during Covid-19, we’re not inclined to expect anything exciting for 2020 either.
So, the big question must relate to the share price? Generally we avoid discussing “suspended” shares like the plague but in this instance we’re a little curious as to the future when the shares are admitted to trading again. Should the price manoeuvre below 18p, reversal to an initial 10p is anticipated. If such a level breaks, we’d hope 4.35p shall provide an ultimate bottom, along with a suitable excuse for a proper bounce. Visually, there’s even ample argument to hope for a bounce at 10p given this matches the all time low in March of this year.
Closure below 4.35p would be a really bad thing. We’re unable to calculate below this point.
Of course, we can easily return to our opening truism; “The Market Always Knows” as there’s a (very slight) chance all this utterly dreadful news is “priced in” with a result, when the share is relisted, some surprise recovery becomes possible. We certainly shall not be impressed unless the price exceeds 35p and rejoins the historical uptrend. Such movement is liable to prove worthwhile, capable of triggering further recovery to 40p initially with secondary, if exceeded, at 52p. Beyond such a level, we’d need to stir the tea leaves again as the potentials currently look too good to be true.
FUTURES
| Time Issued | Market | Price At Issue | Short Entry | Fast Exit | Slow Exit | Stop | Long Entry | Fast Exit | Slow Exit | Stop | Prior |
| 10:30:41PM | BRENT | 48.83 | ‘cess | ||||||||
| 10:37:14PM | GOLD | 1808.4 | |||||||||
| 10:41:45PM | FTSE | 6393 | |||||||||
| 10:43:53PM | FRANCE | 5574.3 | 5542 | 5528 | 5507 | 5573 | 5591 | 5605 | 5626 | 5559 | Shambles |
| 10:45:50PM | GERMANY | 13303 | 13233 | 13187.5 | 13124 | 13316 | 13373 | 13402.5 | 13459 | 13272 | |
| 10:56:48PM | US500 | 3631.87 | |||||||||
| 10:58:45PM | DOW | 29909 | ‘cess | ||||||||
| 11:01:32PM | NASDAQ | 12171 | ‘cess |