A simple guide to coming up with an investment Opportunity
Hello,
1. Understand the Business
Before committing your money to any investment, the first and most crucial step is to thoroughly understand the company you’re considering. Below are some of the things you carefully need to look at.
Business Model: Start by breaking down the company’s business model. How does the company generate revenue? What are its primary products or services? In our case here;
Adani Wilmar Ltd. provides edible oil, vanaspati and specialty fats. The firm offers vanaspati, packed basmati rice, pulses, soya chunks, besan and specialty fats, lauric range products, castor oils, oleo chemicals and non-GMO soya products.
More analysis on the revenues & expenses of the company is also very key. All this data can be found on the Tradingview website under financials.
Once you have understood the companies moat, now its time to move to technical analysis.
Technical analysis is a method used to evaluate and predict the future price movements of financial assets, like stocks, by analyzing past market data, primarily price and volume.
Technical analysis is very important since all market information has been priced in the stock market price. Below is a past chart for the company adani Wilnar.
The chart shows that the company has moved from the bottom to the top and back to the bottom. From our Tradingview chart it's possible to identify the trend as well as the time used for each move. This will be very key as we build our trading bias. From our chart, its easy to see the time taken for each move and the highest/lowest prices.
Our chart easily communicates that the stock has been on a sideways move for over 500 days. Very key to note is that the stock is also trading at the bottom. This makes it at a great buy point.
Next is to identify the patterns forming on the chart. In our chart the stock is forming a corrective wave for a buy to the upside. My buy areas would be around 320 with my first target at IRN 500. I shall relook at the stock once we hit those areas.
Recommendation
Based on the analysis, consider buying Adani Wilmar Ltd. stock at around IRN 320, with a target to sell at IRN 500. Monitor the stock closely, especially as it approaches the target, to reassess your position.
Good luck!
1. Understand the Business
Before committing your money to any investment, the first and most crucial step is to thoroughly understand the company you’re considering. Below are some of the things you carefully need to look at.
Business Model: Start by breaking down the company’s business model. How does the company generate revenue? What are its primary products or services? In our case here;
Adani Wilmar Ltd. provides edible oil, vanaspati and specialty fats. The firm offers vanaspati, packed basmati rice, pulses, soya chunks, besan and specialty fats, lauric range products, castor oils, oleo chemicals and non-GMO soya products.
More analysis on the revenues & expenses of the company is also very key. All this data can be found on the Tradingview website under financials.
Once you have understood the companies moat, now its time to move to technical analysis.
Technical analysis is a method used to evaluate and predict the future price movements of financial assets, like stocks, by analyzing past market data, primarily price and volume.
Technical analysis is very important since all market information has been priced in the stock market price. Below is a past chart for the company adani Wilnar.
The chart shows that the company has moved from the bottom to the top and back to the bottom. From our Tradingview chart it's possible to identify the trend as well as the time used for each move. This will be very key as we build our trading bias. From our chart, its easy to see the time taken for each move and the highest/lowest prices.
Our chart easily communicates that the stock has been on a sideways move for over 500 days. Very key to note is that the stock is also trading at the bottom. This makes it at a great buy point.
Next is to identify the patterns forming on the chart. In our chart the stock is forming a corrective wave for a buy to the upside. My buy areas would be around 320 with my first target at IRN 500. I shall relook at the stock once we hit those areas.
Recommendation
Based on the analysis, consider buying Adani Wilmar Ltd. stock at around IRN 320, with a target to sell at IRN 500. Monitor the stock closely, especially as it approaches the target, to reassess your position.
Good luck!
Portfolio Manager
Dyer & Blair investment Bank, Kenya.
Follow below handles for investment insights
Twitter: twitter.com/thesharkke
Free in-depth stock markets analysis Telegram channel: t.me/stocksfromtechnicaleye
Dyer & Blair investment Bank, Kenya.
Follow below handles for investment insights
Twitter: twitter.com/thesharkke
Free in-depth stock markets analysis Telegram channel: t.me/stocksfromtechnicaleye
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