Adcock Ingram (AIP), a prominent player in South Africa's pharmaceutical sector, serves both the private and public healthcare markets, with extended operations in India and other Sub-Saharan African countries. The company's pricing strategy is significantly influenced by the government's "single exit price" mechanism, which tightly regulates medicine pricing,...
See link below for previous update.
Adcock did not take off on the good interim results in the last update.
The technical picture is still the same and the stock has advanced very little in just under a year.
I am neutral on this stock as it is clear overlooked by the market and its price action is very choppy.
The stock is still displaying upward trend...
The stock has reversed back into a previous zone of accumulation. I will be looking for support here at 200 day moving average to enter a long position.
Preferably bulls would like to keep price above the R52 level.
RSI in oversold territory.
Adcock (AIP) is a leading supplier of pharmaceuticals to both the private and public sector in South Africa. It has also diversified to India and other sub-Saharan countries. The business that Adcock is in is dominated by the government's "single exit price" mechanism which determines the price for each type of medicine. In terms of this, Adcock was only permitted...
Adcock released a very good set of interim results for the six months ended 31 December 2022 yesterday.
Revenue +8%
Gross profit +8%
Trading profit +15%
HEPS +20%
Dividend +20%
This is an overlooked stock but one good set of results certainly does not mean buy so I guess a deep dive is necessary on this one.
The technical picture is also a good looking one.
From...
Inv Head and Shoulders formed on Adcock and now the price is above the neckline showing upside to come.
7>21>200
RSI>50
Bullish
CONCERNS:
This is a very volatile, flimsy and illiquid stock compared to the Blue Chips. I call these unhealthy charts which seldom work well with breakout patterns. Maybe as a Weekly analysis or Monthly will show some more promising...
AIP been trading in a range with good support at R50. My preference will be on the long side. Buy around R50 area sell bounces to R54.
Trade ideas are my own and not financial advice.
A price action above 5000 supports a bullish trend direction.
Crossing below this level will negate the bullish stance.
Remains above its 200-day simple moving average.
However, opinion remains low and one might need to wait for the price action to develop further.
At a forward price-to-earnings ratio of 10.8 times, the share is moving higher from it's lowest valuation levels since coming to market. The last set of results were mixed with Prescription turnover increasing 0.7%, consumer turnover rising by 13.4% to R892m, Hospital turnover improving by 11.9% while gross margins decreased from 39.4% to 37.3%. Group Revenue...
This share has been consolidating for a while now in what still looks like a bull flag. Wait for a breakout of the flag pattern for targets of 4750 & 5088
JSE:AIP is showing strong growth after a terrible knock it took during the coronavirus lockdown. On the chart it is clear that JSE:AIP is moving toward its Weekly Rectangle Resistance Level. A breakout is possible out of the daily consolidation block on heavy volume.
The DI + lines is above the DI- lines that indicates more bullish trend movement, with the ADX...
Adcock Ingram building a bullish looking flag. A break to the upside will open two targets - 4770 and 5080. Warning: Very volatile markets. Stick to stop losses.
- Price has returned to a major trendline and formed a bullish reversal candle on the monthly chart.
- Will be watching the share to see if it retests the lows or perhaps closes above R45
-- MANAGE YOUR RISK - -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
JSE:AIP
After some large volume, the volume has declined and price is gaining momentum after the distribution. See post below discussion the distribution that is now playing out.
Though it possible that we might see the prices move up towards the descending trendline, it is also probable that once prices break the 5 200 pyschological level, more sellers will enter this market. Prices are below the 200 exponential moving average on all major timeframes, signaling a bearish bias. The market could likely open with a gap down considering that...
