SAIC Motor Corporation Limited : Bet on a technical rebound
Entry price | Target | Stop-loss | Potential |
---|
CN¥12.48 |
CN¥0 |
CN¥11.5 |
-100% |
---|
SAIC Motor Corporation Ltd., through joint ventures, manufactures and markets automobiles and related parts and accessories.
From a fundamental viewpoint, SAIC Motor Corporation Limited is undervalued in terms of enterprise value. Based on the current price, its market capitalization, minus its net debt, represents 0.17 times its revenues. This valuation is just 6.2 and 5.57 times the two next years earnings.
After several weeks of horizontal fluctuations, the stock is coming back close to the lower limit of the range. Moving averages are flat and technical indicators illustrate the oversold situation. The CNY 12.2 area could cause a positive reaction for the coming trading sessions and allow a technical rebound towards the CNY 13.3 mid-term resistance and then the long-term target price is CNY 14.3. A stop loss order can be placed under the support currently tested.
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