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Q3 stocks – Page 2
BP (BP.)
The oil major continues to grapple with the fallout from the Gulf of Mexico oil spill and low crude prices that look set to remain low and perhaps fall further, but cost cutting measures and continued good performance in downstream activities has enabled the company to maintain its dividend and retain the support of shareholders, just. Has a line been drawn under Deepwater Horizon, making BP the buy opportunity of its class?
Will shares rally back towards 13-month highs of 526p? or fall beneath support to 13-month lows of 364p?
Technical observations
- Shares near YTD lows 380p
- 24 July bearish cross by 50-day and 200-day MAs
Bloomberg Broker Consensus, BP: 24% Buy, 61% Hold, 15% Sell;
Consensus target: 453p (+16%)
BT Group (BT.)
BT (BT.A) and fellow dwarf-killer Sky (SKY) have been making life hell for smaller sector players like Talktalk Telecom (TALK) as they use their size and financial resources to undercut each other in such a way as to effectively freeze out the smaller, less resilient competition. Furthermore, each is calling for Ofcom to investigate the other – Sky being accused by BT of overcharging a captive pay-tv market while BT being accused by Sky of unfairly dominating the sector through its control of telephone lines. Sky has suggested BT should spin off its Openreach department – which oversees maintenance and extensions of the copper and fibre optic network on which BT’s competitors depend, but (in short) it looks as if that will be too complicated to execute any time soon. BT 1, Sky 0?
Will shares break out above resistance to Aug 2001 highs 504p? or will they pull back towards the channel floor 440p?
Technical observations
- Shares trading around the 20-day MA
- RSI and Stochastics found support at neutral
Bloomberg Broker Consensus, BT: 48% Buy, 32% Hold, 20% Sell;
Consensus target: 504p (+8%)
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Prepared by Michael van Dulken, Head of Research
