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Changpeng Zhao deprived bitcoin of the former focus of the players
Changpeng Zhao deprived bitcoin of the former focus of the players On Wednesday, bitcoin continues to work out the resistances passed in May as supports, without abandoning the scenario of continuing positive dynamics at least until the SEC verdict on October 18 regarding the ETF from ProShares.The unrestrained dynamics (more than 25% growth since the beginning of October) on the eve caused an influx of 3,900 BTC to the exchanges, which at the moment pushed the rate to $54,000, but the market "digested" them and they did not change the picture.Glassnode, Sentiment, Arcane Research, The Block gave additional confirmation of the participation of institutions in the current rally, for which there have been no reasons to exit yet. Bloomberg analyst Eric Balchunas on the eve again recalled the high chances of approval by the Commission of an exchange-traded fund based on bitcoin and noted that the lack of news should be perceived positively.Whales with 100-1000 BTC wallets have accumulated 85,700 BTC over the past two weeks. Long-term holders have been increasing their positions at a pace 13-15 times greater than miners mine coins. It is worth recalling that in addition to the SEC, Crypto Expo Dubai 2021 starts tomorrow. The list of speakers is impressive, we can expect positive comments and deals.In this light, many commentators began to pay attention to altcoins. Against the background of recent decisions and speculation about the plans of American regulators, at least the same institutions may approach the purchases of these assets more selectively. But the influence of the news has not been canceled.The day before, Binance announced the launch of a $1 billion fund for the development of the Binance Smart Chain ecosystem. In addition to supporting projects and developers, it is planned to allocate $100 million to stimulate liquidity. CEO of the crypto exchange Changpeng Zhao expects to increase the audience from the current 100 million to 1 billion. The company has money, incentives can be attractive. The market believed - Binance Coin and tokens of the most popular projects PancakeSwap, Venus, Alpaca Finance, Auto shot on the news.
Oct 13, 2021 Read
Five stocks to watch for in September: large volumes, strong fundamentals
Five stocks to watch for in September: large volumes, strong fundamentals August was a turbulent month for the US stock market, as the S&P 500 index lost most of the growth that was observed in the first few days of the month.The main reason for such unstable dynamics was the talk in the Federal Reserve System, which may end with the expected reduction of the multibillion-dollar asset purchase program of the central bank. The fall in Chinese stocks also added some volatility to the markets.The following five most traded stocks show which stocks were in demand among traders at the end of the summer.These five companies demonstrate solid fundamentals and growth prospects that set them apart from the crowd.Stocks worth paying attention to in September 2021: a retrospective of AugustBelow you will find an explanation of why the following five stocks were of interest to investors in August 2021.1. NVIDIA (NVDA)NVIDIA reported good results in the second quarter of 2021. Revenue increased by 68.2% compared to the same period a year ago to $6.51 billion, and adjusted earnings per share more than doubled year-on-year, reaching $1.04 compared to $0.55 per share last year, which the company reported in the second quarter of last year.Such an impressive dynamics was primarily due to the growth of two main components of the company's revenue: a 35% increase in data center revenue and an 85% jump in the gaming segment. Its smaller segments, such as original equipment manufacturing (OEM) and professional visualization, more than doubled their performance compared to the second quarter of fiscal 2021.Moreover, the company recently announced that it has entered the promising metaverse market after launching a platform called Omniverse, an ecosystem in which developers will be able to create and launch virtual worlds for consumer interaction."We still like Nvidia's history, and we see the company as a best-in – class player in the field of artificial intelligence (AI) with the possibility of growth before the introduction of next-generation network devices/data processing devices (DPU)," commented Hans Mosesmann of Rosenblatt Securities after the publication of an optimistic NVIDIA report.The combination of a reliable balance sheet, high past performance and attractive growth prospects makes NVIDIA the company whose shares are worth watching.2. Tesla (TSLA)Despite a short-term drop in Tesla shares, which occurred a few days ago amid news of an investigation by the National Highway Traffic Safety Administration (NHTSA) aimed at the company's autopilot function, its share price recovered after the unexpected launch of the Tesla Bot.This humanoid robot, which was introduced last Thursday by the company's founder and CEO Elon Musk, is designed to help people perform " dangerous and repetitive tasks."Despite the fact that initially the company's shares reacted negatively to this news, ending Thursday's session with a fall of 2.3%, then they grew.Daniel Ives, managing director of Wedbush and senior securities market analyst, called the Tesla bot "an absolute conversationalist." He expressed concern about the implications of the announcement for Tesla's stock price at a time when the company is facing increasing regulatory scrutiny.3. Robinhood (HOOD)Robinhood shares have been in a downtrend since they peaked after the initial public offering (IPO) at $85 per share. Meanwhile, the price movement has already filled the bullish gap left on the day when stocks unexpectedly rose to these levels.This decline was partly influenced by the company's gloomy comments in the latest quarterly report, as management warned investors about the "seasonality" that could affect business results in the third quarter of 2021."For the three months ending September 30, 2021, we expect that seasonality and lower trading activity in the industry will lead to lower revenues and significantly fewer new replenished accounts than in the previous quarter," the management team noted in the second quarter results.The weakening of the favorable effect of the pandemic and the decline in prices and trading volumes of Dogecoin (DOGE) – one of the cryptocurrencies supported by the Robinhood platform – may contribute to such a slowdown. Investors seem to be disappointed with this statement, as the shares fell by more than 10% on the day of the report's publication.Moreover, in the second quarter of 2021, the average revenue per user (ARPU) fell to $ 112, which is 18% less than in the previous quarter, while transaction revenue increased by only 7.4% compared to the first quarter of the year. This quarterly jump was significantly less than the 79% growth that the company consistently reported during the first quarter of 2021.4. AMC Entertainment (AMC)The price of AMC shares has been in a downward trend since they reached a daily high of 72.6 USD per share on June 2. They are currently trading 49% below these levels.Despite the fact that after the announcement of financial results for the second quarter of 2021, the company's shares initially rose, the session ended with a 6% decrease in the share price.For the second quarter of 2021, the company reported revenue of $444.7 million. This is significantly more than $ 18.9 million a year earlier, amid the closure of theaters due to the pandemic.This result far exceeded the consensus forecast of analysts compiled by Refinitiv of $382.1 million for the period.Since the release of the report, trading volumes have remained stable and below the average for 10 days. The shares are gradually growing, although they remain in a downward trend.Further, if the shares fail to reach a higher maximum in the daily price movement, the directional pattern indicates a further decline in the price of AMC Entertainment shares.At the same time, momentum indicators send buy signals, as the relative strength index (RSI) has risen above 50, while the MACD has just crossed the signal line, which is accompanied by increasingly high positive data from the momentum indicator.5. Virgin GalacticThe share price of Virgin Galactic has been very volatile over the past few months due to a variety of events, including the approval of a license for commercial space flights by the US Federal Aviation Administration (FAA) and a successful test flight with Sir Richard Branson as a passenger.Moreover, the company reported its financial results for the second quarter of 2021 and announced that it has resumed ticket sales for new passengers with almost $82 million in customer deposits.But of all these events and announcements, the sale of $500 million worth of ordinary shares at a price of $49.2 per share had the greatest impact on the price. The sale, which took place on July 9, immediately led to a 6.6% drop in the stock, followed by several other notable intraday movements, including a 17.3% increase on July 12 and a 12.4% drop on July 14.It is impossible to predict whether the stock price will recover to the levels preceding the placement, but the daily chart shows that the lower trend line of the symmetrical triangle model, which was formed in recent months, has now been broken.ConclusionsIt is important to remember that, despite good results in the past and seemingly reliable fundamentals, future positive returns on these shares cannot be guaranteed.
Aug 25, 2021 Read
Bitcoin recovery, Liquid hacking and falling oil prices: results of the week
Bitcoin recovery, Liquid hacking and falling oil prices: results of the week Bitcoin continued its systematic recovery, and the price of oil of the main brands fell against the background of a decrease in reserves in the United States. Read these and other important events from the world of finance and cryptocurrencies in our weekly newsletter.During the week from August 16 to August 20, several important events occurred at once: bitcoin and other popular digital assets continue their systematic recovery, and the price of oil of the main brands fell against the background of a decrease in reserves in the United States. Also this week, a hacker broke into the Japanese crypto exchange Liquid, stealing $86.2 million. Read these and other important events from the world of finance and cryptocurrencies in our weekly newsletter.CryptocurrenciesThe cryptocurrency market continues its systematic recovery. During the past week, bitcoin managed to successfully gain a foothold above $42,000, which marked the final exit from the negative trend. Altcoins are also not far behind, which also break through key resistance zones. Fundamental factors indicate that a new growth cycle is approaching.Billionaire and owner of the Dallas Mavericks basketball team, Mark Cuban, spoke approvingly about the Dogecoin meme cryptocurrency, after which he was supported by the director of Tesla and SpaceX, Elon Musk. Against this background, the price of DOGE rose by 16% on August 16.The creators of the DOGE meme cryptocurrency have resumed the work of a non-profit foundation that is engaged in the development of the coin and its ecosystem. It includes the CEO of Tesla and SpaceX, Elon Musk, as well as the co-founder of Ethereum, Vitalik Buterin. In particular, the members of the fund will organize the hiring of new employees and will develop products in the cryptocurrency ecosystem.Tightening the screws in China, inflation in the EU and checking accidents with Tesla carsChairman of the US Federal Reserve System (FRS) Jerome Powell noted the importance of digital money. "The opinion that digital money is really becoming more and more important is absolutely true," he stressed. Earlier, Powell said that in the future, bitcoin will become a replacement for gold.The branch of the People's Bank of China in Shenzhen "cleared" 11 companies associated with illegal activities in the field of cryptocurrencies in the country. We are talking about companies that the Chinese authorities suspected of "illegal operations with virtual currencies". Their names were not disclosed.Euro zone inflation in July exceeded the forecast of the European Central Bank (ECB). The study of consumer prices showed that the overall inflation in the bloc of 19 countries in July was 2.2% year-on-year. Earlier, the regulator predicted that the price increase would be at the level of 2%.National Highway Traffic Safety Administration (NHTSA) The United States has started checking 11 accidents that hit Tesla cars. We are talking about accidents in which cars with the autopilot turned on drove into places where emergency services were working.OilThe price of oil of the main brands continues to decline: on August 16, it fell by more than 1% against the background of a decrease in economic activity in China, where new outbreaks of COVID-19 are registered.On Thursday, August 19, oil prices continued to fall amid a decline in US inventories. So, the cost of a barrel of Brent for delivery in October was $66.02. Compared to the closing level of trading a day earlier ($68.23), the price fell by 3.24%. At the same time, at the moment, the cost of a barrel reached $65.91. At the same time, the price of the WTI fell to $62.8.Company newsOn Thursday, August 19, the shares of the online broker Robinhood on the premarket fell by 12% after the publication of the financial report for the second quarter of 2021. During the day, they were trading at $44.Nvidia, the largest developer of graphics chips, reported revenue growth to $6.51 billion in the second quarter. The company exceeded analysts' expectations.The largest retail chain Walmart has placed an ad about hiring a leading product manager with experience in the field of digital currencies. The new employee will have to develop a strategy for the company in the field of cryptocurrencies.The Russian online marketplace Ozon for the second quarter of 2021 increased the turnover from the sale of goods and services by almost twice — by 94%. It amounted to 88.957 billion rubles. For the same period last year, this figure was 45.75 billion rubles.An unknown hacker broke into the Japanese crypto exchange Liquid and withdrew at least $86.2 million from the hot wallets of its customers. The attacker stole $4.7 million worth of bitcoins, $44.6 million worth of ether, $12.7 million worth of XRP, as well as various other tokens worth $24.2 million. After detecting the hacking, Liquid transferred the digital assets of customers to cold wallets.Investment firm Tiger Global has acquired more than 2.6 million shares of the Coinbase crypto exchange. With the current value of Coinbase shares at $256.6, the purchase amount is about $673 million. At the same time, the report for the SEC reflects the amount of $665 million. The valuation of Coinbase shares was held at $253.3 per share.
Aug 22, 2021 Read
Toyota shares fell by 4.4% after the announcement of production cuts
Toyota shares fell by 4.4% after the announcement of production cuts The automaker will create 40% fewer cars in September due to a shortage of semiconductorsToyota shares fell by 4.4% after the announcement of production cutsThe securities of the automaker Toyota fell by 4.4% after the company announced its intention to reduce production in September by 40%. This follows from the trading data.Prior to the news about the decrease in car production, Toyota shares were trading at a price of 9,640 yen (about $87.8) on the Tokyo Stock Exchange. Half an hour before the closing of trading, the price began to decline sharply, and by 15:00 local time it reached 9,295 yen (about $84.7). Thus, the drop was 4.4%.At first, some publications wrote about the planned reduction with reference to sources, but then this information was confirmed in the company itself. Toyota cited the global shortage of semiconductors as the reason, which began at the height of the COVID-19 pandemic. The decision was also influenced by the fact that there is an increase in the number of coronavirus infections in Southeast Asia.According to the updated plan, Toyota intends to produce 360,000 fewer cars in September than expected. Only at factories in Japan, production will be reduced by 140,000 cars — work at 14 facilities will be temporarily suspended.At the same time, the company has not changed its goal for the financial year — as before, it is going to produce a total of 9.3 million cars by March 2022.Also on August 19, Volkswagen and Ford announced plans to reduce production. The German carmaker is not yet sure whether it will have to reduce capacity and by how much. The American company also intends to temporarily close the plant in Kansas City, which produces F-150 pickups.The global shortage of semiconductors affected Toyota less than its competitors. The company became the last among its colleagues in the sector to announce a reduction in production due to a shortage of components. In many ways, Reuters notes, Toyota managed to survive difficult times thanks to its strategic reserves of microchips — the company began storing surplus after the accident at the Fukushima-1 nuclear power plant in 2011.
Aug 19, 2021 Read
Bitcoin looms for trend followers - technical review from August 18, 2021
Bitcoin looms for trend followers - technical review from August 18, 2021 This week, Cred and DonAlt, the authors of the Technical Roundup mailing list, discuss how the majors (BTC/USD, ETH/USD) got to the resistance levels. We will also talk about the breakthroughs of some altcoins, in particular XRP, Solana and Aave. We will not ignore the dynamics of Ethereum.Bitcoin Looms for Trend FollowersBitcoin / dollars closed above $45 thousand, we can say, according to the weekly tradition. And this is very important. Not only the fact that the average support level for the week fell at $45 thousand, but also the fact that such a closure raised the price above the 21-week moving average – a popular indicator for detecting a trend on a high timeframe. The same argument applies to the 200-day moving average. Both indicators converge around $45 thousand in tandem with the above-mentioned weekly level.Although Cred and DonAlt do not trade on moving averages, it is useful to have an idea of what positions can be taken by participants following the trend. Given that most systems built on a trend on a high timeframe are moving into a bullish phase, it is important to take into account the probability of a pattern failure. In this case, a return below $45 thousand will lead to the fact that many of the participants will be out of the game and, probably, the downward spiral will spin up to $38-$40 thousand.In a broader sense, the nearest support level is at $45 thousand, and the nearest resistance level is at $49.1 thousand (or even closer to $50 thousand). As previously stated, the area around $50 thousand is quite dangerous from the point of view of calming the dynamics. If the bears are right, then this area will be the main candidate for a lower maximum. If the bulls are right, but the market will show a red candle before reaching a record high, the area of $50 thousand is most likely more suitable for this than others.As a rule, the market looks strong until the opposite is proven, but new long positions seem less attractive as the market approaches the $50 thousand mark. If they are going to throw us, then this denouement is already somewhere close. Support at the level of $38 - $40 thousand in the style of "get rich or die", the nearest support is at $45 thousand, and resistance at $50 thousand.Ethereum Dutifully Follows Bitcoin  The ETH/USD pair is at the resistance level ($3240-$3430). The pair with BTC is somewhere in the same range. Little has changed for Ethereum.In last week's issue, we drew parallels between Bitcoin for $50 thousand and Ethereum for ~$3300 dollars as areas where new long positions are the least favorable in terms of the risk/benefit ratio. These concerns are also applicable to this week: now the ETH/USD pair is at the resistance level.Closing on a high timeframe above $3,500 is likely to pave the way to new record highs, and it will do so taking into account the risks. Positioning now means buying at the resistance level in the hope that it will be broken, and it is still unclear whether a pullback will happen. Positioning above $3,500 would mean buying power, and the level itself indicates a clear disability in this scenario, i.e. a close below ~$3,300 will no longer be bullish.It doesn't look so weighty, but from the point of view of chances, entering at the resistance level compared to buying above it, is a completely different setup. According to traders, it is the latter scenario that should be followed.If the market pulls back, the nearest support level for the pair with USD will be found at $2750-$2890.DonAlt shillit XRPDonAlt, aka David, kept talking about long XRP positions from the very lows, and that's why we decided to include XRP in this week's issue.Let's start, perhaps, with a pair of BTC. Here the installation is quite simple. The cyclical minimum is at the level of 1530 sats, while the price forms an unsuccessful breakdown pattern and closes above it. The next resistance level is 2980-3270 sats, and this area has been tested many times already. Accordingly, it is quite reasonable to assume a breakdown of this level and a price movement to 4322-4650 sats (the next resistance level).Next – the USD pair. The price bounced off the support level at $0.60 and closed above $1. So far, there are no convincing resistance levels to new highs. A drop below $1 is likely to cancel out the bullish mood.What about the context? The market literally exploded when the SEC charged Ripple Labs and two of its executives for allegedly offering unregistered securities. The market survived and has even been growing since then. If this news was not enough to bury the token, then what can I say? At the same time, any flow of positive news is likely to accelerate the rally. Any negative news, in turn, can hardly be worse than this announcement itself.The charts look good, and the discussions are rather in a positive direction. It is unlikely that the token will fall below $1. In turn, DonAlt would prefer to observe a bullish run up to new highs.Summer in the rays of "Solana"Solana pulled ahead and set new record highs for its pairs with BTC and USD.Trading on breakouts has a not so positive reputation in the crypto industry, but it is not the worst option if you know what to do. The main advantage of trading on breakouts (if you do everything "correctly", whatever that means) is that these settings usually impose very clear price and time invalidations.If the market breaks out, especially if the breakout happens before reaching new record highs, the last thing it should do is hang near the breakout level and return soon for retesting. Both are red flags. Good breakouts, as a rule, do not roll back.With this in mind, the levels of disability for trading on breakouts are quite clear. Any movement back below the breakout point will be a signal to exit. In some cases, it will be quite reasonable to get out of the race a little in advance.The breakout level for the Solana/USD pair is at $44-47. As long as the market is far from this area, we are waiting for the trend to continue towards the goals with a round number. Your best entry helpers are lower timeframes and correlated pullbacks throughout the market.Aave restores support  If altcoins continue to grow, we should expect that the DeFi case will work out (against the background of how well things are going with Solana, Terra and other projects). The Aave/USD pair also demonstrates an interesting structure.The price regained support at the level of $324-$366. It was a consolidation that preceded the weekly lower low. At these levels, you can often see strong resistance, but it was all absorbed. Now the level of support is clearly felt.There will probably be some friction near the maximum of $450-$470, but the key assumption is that as long as the restored weekly structure ($324-$366) remains, new highs are more likely than the continuation of the bearish phase.The market is quite far from this area, so a pullback across the entire market would be ideal, in which the Aave/USD pair will return to the support level.
Aug 18, 2021 Read
The crypto market is at a crossroads: has the time of Bitcoin passed?
The crypto market is at a crossroads: has the time of Bitcoin passed? The crypto market shows a moderate decline, which is quite natural after the rally of the previous weeks. The total capitalization again exceeded the important psychological barrier of $2 trillion. The last time the crypto market was at this level was in mid-May. Despite the beginning of corrective pressure, the scale of the market pullback is still very small.The Bitcoin dominance index continued to decline, falling to 43.6%, which indicates the presence of a wide demand for altcoins. Probably, the retail sector continues to believe in the long-term potential of the market, preferring to "diversify" investments in it beyond the already noticeably grown top coins.The greed and fear index for Bitcoin and the largest cryptocurrencies has remained in the territory of “greed”since last week. According to the idea, the indicator in its current state should signal the approach of a correction, but in fact we have seen many times that both the traditional market and the crypto sector can ignore reality for a long time and continue to grow. Nevertheless, it can't last forever.The hashrate in the Bitcoin network continued to grow and is currently at the level of November 2020. This level is far from the historical maximum, but there is no doubt that as autumn approaches, an increasing number of miners will start running their computing power.It is generally assumed that the price of an asset also increases along with the growth of the hashrate. However, it is not only the price that is growing: along with the growth of the hashrate, miners are also faced with an increase in the complexity of calculations. Of course, this business remains very profitable, whereas after China expelled miners from its territory, it turned into super-profitable for some time at all.Anyway, the cost of Bitcoin mining is one of the few physical metrics that are tracked by participants of the crypto market as a fundamental price driver. In this direction, everything may indicate a continuation of price growth.If a new impulse is received, similar to Tesla's investment in Bitcoin, the crypto market can develop activity with a new force. In the meantime, he is at a crossroads. It is likely that the development of the situation with the incentives of the leading central banks, as well as the state of the leading economies of the world, will significantly affect the future of Bitcoin and the rest of the crypto market after it.Even 3 years ago, the correlation with the traditional market caused strong rejection among holders of digital currencies. Now, when it was large investors who could prevent a broad correction of the crypto market, the attitude has changed, but we should not forget that institutional investors are still not crypto enthusiasts.
Aug 17, 2021 Read
The ETH/USD forecast for August, 16-22. Ethereum has become more popular than bitcoin
The ETH/USD forecast for August, 16-22. Ethereum has become more popular than bitcoin Ether may go for a short-term correction.The second currency of the crypto world continues to attract the attention of investors. The profit of the Coinbase crypto exchange for the second quarter showed that the volume of ether trading increased to 26% of the total volume of the cryptocurrency, exceeding the volume of bitcoin trading, which, on the contrary, fell to 24%. According to Coinbase, the increased interest in decentralized finance (DeFi) and non-interchangeable tokens (NFT) has stimulated the growth of ether trading. Our traditional analysis of ETH/USD will show how the growth of popularity will affect the cryptocurrency exchange rate.The price of ether last week increased by 9.89% and by the end of last week amounted to $3311.65. After the recent rise, the ETH/USD rate reached the 61.8 percent Fibonacci retracement level at $3,356. 83, which is likely to become a tough resistance. If the price pushes off from the upper resistance, the "bears" will try to pull the pair to the 20-week exponential moving average (EMA), according to the technical analysis of ETH/USD.Both moving averages have an upward slope, and the relative strength index (RSI) is in a positive zone, which indicates the advantage of buyers. Any drop is likely to find strong support at the $3000 level and the 20-week EMA.On the other hand, a breakout and a close above the $3356.83 mark will open the doors for a possible rise to the 78.6 percent Fibonacci retracement level at $3806.71. The first sign of weakness will be a breakout and a close below the 20-week EMA. Such a move will indicate a weakening of the bullish momentum.The price of ether on August 7 overcame the level of $3000, but the "bulls" could not benefit from the growth and start a new uptrend. This suggests that the "bears" are trying to stop the growth.Sellers will have to lower the price below the 20-day EMA to signal a weakening of the bullish momentum. If they succeed, a few aggressive "bulls" who bought a break above $3000 may fall into the trap.This can lead to the closing of a long position and a decrease in the price to the 50-day simple moving average (SMA).Conversely, if the ETH/USD rate bounces from $3000 and rises above $3450, the bullish momentum may strengthen, clearing the way for growth to $4000 and $4200.What will be the ETH/USD exchange rate at this weekEther has been above $3000 over the past few days, which will indicate an advantage for buyers. If the bulls raise the price above $3,450, the upward momentum may strengthen.On the other hand, if the "bears" pull the price below the support of $3000, the ETH/USD rate may fall to the 50-day moving average.
Aug 17, 2021 Read
Philip Morris continues to expand in the markets of tobacco heating systems
Philip Morris continues to expand in the markets of tobacco heating systems The largest manufacturer of tobacco products, Philip Morris International Inc. (PM), has released a report for the second quarter of 2021. The company's revenue showed an increase of 14% y/y, to $7.59 billion, slightly short of the general market forecast. Due to cost optimization, operating profit increased by 14.6% y/y, to $3.13 billion, exceeding investors' expectations. EPS was slightly below the average estimates and amounted to $1.39, showing an increase of 11.2% y/y.The volume of supplies of tobacco products and tobacco heating systems increased by 6.1% y/y, showing a stronger increase compared to 2019-2020. In particular, for the first time in a long time, the supply of traditional tobacco products increased by 3.2% y/y, to 156.1 billion units, and the Middle East and Africa became the main regions for growth (+11.6%). However, it is worth taking into account the low base of the second quarter of 2020, during which the introduction of quarantine restrictions began.The direction of alternative smoking devices and tobacco heating systems increased by 30.2% y/y, to 24.4 billion units, primarily due to the expansion of the largest markets of presence - the EU and Eastern Europe (+64% and +33%, respectively). The number of IQOS users amounted to more than 20 million, most of whom stopped smoking traditional cigarettes. The company continues to expand in the markets of tobacco heating systems: its share increased by 1.4% in the quarter and amounted to almost 8% of the total addressable market, providing a further field for growth.Management has announced a new share repurchase program worth up to $7 billion over three years, which will begin in the third quarter of 2021. In addition, the company's management published a forecast for 2021, in which it raised expectations for key financial indicators. In particular, revenue is projected to increase by 6-7%, as well as an increase in operating profitability by 2%. Adjusted EPS for the full year is expected to increase by 12-14%, to $5.79-5.89. Due to the increasing importance of alternative smokeless devices, the company depends on global semiconductor supply chains. However, management pointed out the limited impact of the current global shortage of these spare parts for consumer devices.It is worth noting that Philip Morris is actively reducing its debt burden, as well as increasing its adjusted EBITDA margin. At the moment, the ratio of total debt to adjusted EBITDA is 2.09, whereas at the end of 2020 it reached 2.51. A similar dynamics is noted in the ratio net debt/adjusted EBITDA: 1.74 compared to 1.93 at the end of 2020.We view the Philip Morris report positively, noting strong results for the second quarter and an increase in management forecasts for 2021. Over the past six months, PM shares have generally traded better than many securities of "value" companies, adding 18%. However, we believe that the potential impact of positive factors has already been taken into account in the quotes. As a result, our target price for PM shares is $92.
Jul 22, 2021 Read
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