Pendragon Plc for 17/12/2020

#Brent #Dow The motor trade, enjoying a vile 2020, must surely be high in the “bounce back” stakes if normality returns to the UK. Of course, if the doom-sayers about Brexit prove correct, #Pendragon may suffer supply issues due to lengthy delays expected at docks. Our report in 2019 on the company was prophetic, especially about the price low of 4p! Pendragon is about more than selling cars, developing & supplying software to the motor trade globally and also providing vehicle leasing facilities.

Once we’ve got the 1st of January under our belts, the reality of backlogs, changed tariffs, and of course any necessary adjustment in the price on windscreens, promises to utterly skew predictions of what “normality” may actually look like. Who knows, it may be the case cars built in the UK shall experience price advantages over those built in the free world… At times, it feels likely the UK will jump from a Covid-19 frying pan into a Brexit frying pan, ensuring 2021 (for the UK anyway) promises to be another year of mixed up trading and financial results.

 

We’ve two distinct ways of looking at Pendragon and their prospects for share price recovery. The fall in March to the Covid-19 low of 4p was, from our perspective, arithmetically correct. In the period since, the share has hardly flown to the moon, every upward twitch almost feeling quite grudging. The immediate position of Blue on the chart suggests some hope in the event the share stumbles above 17p at present, this giving early warning some price recovery is coming.

Unfortunately, our software presents 18.2p as a viable trigger level, insisting the share trade above this level to ensure some real upward movement is coming, giving an initial target level of 21.8p with secondary, if exceeded, at 25p. At the 25p level, it becomes important for the price to close above this point. Such a scenario (yes, we know, the price needs to DOUBLE from current) launches a strong argument favouring a long term attraction at 43p.

 

Alas, the immediate picture isn’t terribly assuring as there’s the threat of weakness below 11.5p driving the price back to 8.5p. We suspect this shall become a reality and think 8.5p may provide an ideal level for entry, if speculating on Pendragon making a price recovery.

 

FUTURES

Time Issued	Market	Price At Issue	Short Entry	Fast Exit	Slow Exit	Stop	Long Entry	Fast Exit	Slow Exit	Stop	Prior
10:00:46PM	BRENT	51.13	50.33	50.07	49.7	51.01	51.2	51.54	52.33	50.33	‘cess
10:03:53PM	GOLD	1864.95									‘cess
10:07:02PM	FTSE	6573.14									‘cess
10:09:19PM	FRANCE	5553.8									‘cess
10:19:28PM	GERMANY	13579									Success
10:24:02PM	US500	3700.47									Success
10:31:11PM	DOW	30165	30136	30060.5	29977	30236	30311	30366	30541	30174	‘cess
10:33:08PM	NASDAQ	12672									Success
10:34:57PM	JAPAN	26806

16/12/2020 FTSE Closed at 6570 points. Change of 0.88%. Total value traded through LSE was: £ 7,834,302,099 a change of 42.32%

15/12/2020 FTSE Closed at 6513 points. Change of -0.28%. Total value traded through LSE was: £ 5,504,806,685 a change of -17.61%

14/12/2020 FTSE Closed at 6531 points. Change of -0.23%. Total value traded through LSE was: £ 6,681,528,209 a change of 9.32%

11/12/2020 FTSE Closed at 6546 points. Change of -0.8%. Total value traded through LSE was: £ 6,112,009,870 a change of -15.57%

10/12/2020 FTSE Closed at 6599 points. Change of 0.53%. Total value traded through LSE was: £ 7,239,162,237 a change of 27.24%

9/12/2020 FTSE Closed at 6564 points. Change of 0.09%. Total value traded through LSE was: £ 5,689,395,466 a change of 1.75%

8/12/2020 FTSE Closed at 6558 points. Change of 0.05%. Total value traded through LSE was: £ 5,591,373,092 a change of -5.03%