We have had updates today from stocks I have mentioned in the past such as Mondi (MNDI) the international packaging and paper Company. I first wrote about this on and bought it back in April 2014 when it was trading in the 900's. At that time I introduced it as a mystery stock because I felt that if you knew what it was you would think boxes - what and move on, so how has it turned out.
Not too bad as they have continued to trade well since then and the IMS today generally read well and follows up from their recent credit rating upgrade. So all seem to still be going well but they remain realistic when they summed up by saying:
"Much depends on the macroeconomic environment. However, given the Group's robust business model and clear strategic focus, management remains confident of continuing to deliver industry leading performance and making good progress for the year."
As you can see from the chart below the shares have done pretty well in the last year or so, although they didn't really get going until this year when some industry consolidation took place which perhaps highlighted the value on offer here. The
shares are also up by about 9% this morning to 1423p at the time of writing, so the update seems to have been well received. I presume there could be some more upgrades on the way which is something else I like to see in a stock. So before any upgrades this leaves the shares today trading on a fullish looking 17x with a lowish 2.4% yield. Thus I probably wouldn't recommend chasing them up here, but I note they still have a Compound Income Score (CIS) of 92 driven by growth and estimate revisions despite the average value on offer. Thus it has now definitely become a Quality Momentum stock as reinforced by Stockopedia quality and momentum scores which boost it to a 90 Score on their VQM model.
Otherwise in brief we had a positive / in line update from Renishaw (RSW) which features as another QM stock in the Mechanical Score portfolio with a CIS of 96.
Finally catching up from yesterday there were results from Easyjet (EZJ) which has a recent CIS of 84. These were not that well received as they alluded to a hit from the recent French strikes and the fall out from the recent German Wings crash and perhaps diminishing benefits from oil prices and currency moves. There may also have been disappointment at not seeing better than expected results leading to upgrades, although they did unusually make money in the first half and came within the range of profits they had indicated.
When I first wrote about this I suggested they offered a trading opportunity having come back sharply to 1700p and indeed they had a modest rally from there. However with airlines having lots of unpredictable influence, as we saw in these results, the shares tend to be volatile. In my original post above I did also suggest that as they only pay dividend annually that you could afford to wait and that a price closer to the 200 day moving average might be a better entry point. You can see from
chart that this now comes in at just under 1600p and what looks like some support just below that between 1550p and 1600p. Technical analyst Nicola Duke on the ADVN podcast yesterday also highlighted this area and the fact that 1570p is the 50% retracement level for the move from 1200p or so to the February 2105 peak and this is often seen as a strong support too, but no guarantees obviously.
On valuation grounds at 1650p today it is on around 12.5x and yielding 3.6% and at 1570p it would be <11.8x and 3.8% which doesn't seem too bad as they continue to trade well, but the estimates will need watching. So if you can stomach the turbulence of an airline in your portfolio it might be worth getting your boarding cards ready before the EZJ flight <1600 takes off - groan and on that corny note I've got to fly.