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Open A Buy Bet In March Shire Pharma The Bet: We recommend opening a buy bet in March Shire (Expiry March 19th) at £20 a penny when the quote is standing at 905p - 910p. The target is 1,030p initially and the stop loss is 879p for a risk of £620. The Fundamental View: We area recommending a buy bet in March Shire on the basis that ahead of 2007 results on February 21st the shares have in recent weaks been downgraded to death. Those who have been happy to stick the knife in include Lehman's last week moving the shares to underweight, JP Morgan cutting the price target to 1,060p just before that, and Credit Suisse cutting their price target on the drugs giant to 930p from 1,130p. However, we are going with the view of smaller broker Jefferies and consider that concerns over a slower-than-expected uptake of Shire's hyperactivity drug Vyvanse and its sales outlook are overdone. According to the broker's estimates the sales outcome in 2008 should be helped by promotion and it is forecasting sales of $527m in compared with a consensus forecast of $465m. Open A Buy Bet In March Shire on the basis that the shares have all the downgrades in the price. The stop loss of $1.9679 on March approximates to the anticipated level of the 20 day moving average over the next few days. The Technical View:The shares have on their daily chart one of the more bullish formations, an island day at the bottom of the recent range. The view is that while above the bottom of the gap at 891p on an end of day close basis the upside here is initially February intraday resistance at 968p, with old November support at 1,027p in focus after that. The stop loss of 889p allows for a cushion below the January gap at 891p.
Conclusion: Open buy bet in March Shire, as it is oversold fundamentally and technically, with t1pspreadbetting and you can be trading within minutes - click here to sign up Spread bets carry a high level of risk so you should only speculate with money you can afford to lose. You can lose more than your initial deposit and stake. Before you open an account, please ensure you familiarise yourself with the risks involved and if necessary seek independent advice. The FTSE Rolling Daily Spread is 1 tick during market hours and 4 ticks out of hours. 1 Tick is defined as a full FTSE point. **Tax Law can change. TopSpreadBets.com is owned by t1ps.com Ltd which is authorised and regulated by the FSA and can be contacted at 5-11 Worship Street, London EC2A 2BH or on 020 7562 3370. Where’s the FTSE going? Bet with 1 tick FTSE Rolling Daily spread at t1pspreadbetting.com. t1pspreadbetting.com offers you some of the tightest spreads around. Trade multiple markets with spread betting from £1 per point. Low margin requirements. And the profits you make from financial spread betting are tax-free.* |
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