Remgro is an investment holding company, with a diverse investment portfolio in more than 30 companies. They have a 44.6% interest in Medi-Clinic, a 28.2% interest in RMB Holdings, 25.8% in Unilever, 50% in Air Products and 32.3% in eMedia just to mention a few. Their latest interim results for the period ending December 2017 reported a 10.4% decline in headline earnings and their intrinsic net asset value was reported as R265-84.
- The falling wedge (possibly positive) wants to break upwards.
- Above line A (R207-65) the formation can gain momentum and take the share to the target of R216-78, should the formation play out.
- If the momentum really escalates the share can reach for the 200 day moving average (R221-13).
- The stochastic indicator is also implying a positive divergence. This is seen as positive.
- Below R203-01 the optimism will disappear.
- For traders – Buy above line A but use R203-01 as stop loss to protect capital. The possible targets towards the top are R208-34, R210-44, R212-63, R214-45 and R216-78.
- For medium to long term investors – This old market favourite seldom disappoints. If you are keen, nibble along with the traders and use the same stop loss above.
Feel free to ask questions.
Frans & Christelle