2016-08-05 15:30:31

E. I. du Pont de Nemours and Company, #DD [NYSE]
Commodities, Agricultural chemicals, USA

Financial performance of the company:

Index – DJIA, S&P 500;
Beta – 1.82;
Capitalization – 54.77 В;
Return on asset – 6.80%;
Income – 1.95 B;
Average volume – 5.27 М;
P/E – 30.06;
ATR – 1.54.

Analytical review:

  • The company ranks the first on capitalization in the sector of “Agricultural chemicals” among the issuers traded in the American stock market;
  • Last month shares of the company have grown by 11%. It is expected that the rise will continue;
  • At the end of July the company issued report for Q2 of the fiscal year 2016, which showed that company’s revenue has dropped by 0.8%, to 7.061 billion USD, due to pressure from the strong USD. At the same time, the revenue exceeded the forecast of 7.048 billion USD. Net profit of the company was $1.24 per share against the forecast of $1.10 per share;
  • At the press-conference company’s management said that the results exceeded market expectations because of the costs reduction program. In the reporting period, the company reduced operating costs by 12%;
  • The most positive dynamic was registered in the sectors of "Agriculture" and "Industrial Biosciences”. Operating profit in these sectors has increased by 12% and 24% respectively;
  • The company has upgraded its forecast It is expected now that Q3 of this financial year EPS (earnings per share) will rise by 50%. Company’s earnings per share in the fiscal year 2016 will be at the level of $2.70-$2.75 per share.

Summary:

  • Despite pressure from the strong USD, company’s results were higher than expected. The company has strong growth potential. Revised forecast will support the rise in company’s shares;
  • It is likely that in the near future company’s quotes will go up.

Trading tips for CFD of E. I. du Pont de Nemours and Company

Key levels:
Support levels: 68.80 USD, 68.05 USD and 66.35 USD.
Resistance levels: 69.75 USD and 71.50 USD.

Medium-term trading, Н1
At the moment the issuer is traded at the support level of 68.80 USD. If the price maintains this level and in case of the respective confirmation (such as pattern Price Action), we recommend to open long positions. Risk per trade is not more than 2% of the capital. Stop order can be placed slightly below the signal line. Take profit can be placed in parts at the levels of 70.00 USD, 71.50 USD and 73.00 USD with the use of trailing stop.

Medium-term trading, Н1
Medium-term trading, Н1


Short-term trading М15
Currently, the issuer is traded between the local support and resistance levels of 68.65/69 USD. It is advisable to enter the market after breaking out and testing of these levels. Positions can be opened towards the signal line and the nearest support/resistance levels. Risk per trade is not more than 3% of the capital. Stop order can be placed slightly above/below the signal line. Take profit can be placed in parts of 50%, 30% and 20% with the use of trailing stop.

Short-term trading М15
Short-term trading М15