SEB Technical analysisSEB is forming bullish peanut flag if we see the BOS then we see the targets specified.
View is negated if SEB falls below 148 SEK
SEB
Groupe S.E.B. SA (SK.PA) of France: EPS rising.S.E.B. SA (SEB) (Symbol SK.PA), is a global supplier of Kitchen and household equipment. (White goods) Brand names include include All-Clad, Krups, Moulinex, Rowenta, Tefal and WMF Group. They make non-stick cookware, bakeware, stainless roasters, coffee machines, tea machines, juice squeezers, meat cutters, food vacuum packs, bar-tender equipment, beer servers, blenders, bar-b-q equipment, food warming plates, cookers, bread-making machines, crepe and waffle machines, ovens, microwaves, boilers, kettles, coffee pots and servers, chip machines, electric cooking pots, toasters, vacuum cleaners, air filters, robotic cleaners, steam irons, electric razors, head, ear, and nose hair trimmers, soy-milk makers, air purifiers, pressure cookers, pans, saucepans, frying pans, table cookers snd warmers, cutlery, knives, cutters and slicing devices, weighing machines, scales, and hundreds of other practical household goods.
Whilst the chart of the share price is not giving off any particular buy or sell signal, the shares do look attractive on fundamentals. Here are the things which I like:
SEB has a Track-record of increasing turnover: organic sales growth in the three years to 31 Dec 2018 was +6.1%, +9.2%, +7.8%. In the Q3 2019 results the company said: “ Organic sales growth now expected between +6% and +7% vs. over 7% as announced at end-July”
Rising dividends: the dividend has risen by 9% p.a. over the last 10 years. The 2018 dividend was EUR 2.14, vs 2017 of 2.00, an increase of 7%. Given the forecast of increased earnings for 2019, I am expecting the dividend will continue to be increased. Whilst the dividend of 1.57% is not high, it seems both secure and growing. Certainly it is attractive compared to the interest on cash deposits or bonds.
The Dividend is well covered by earnings: the 2018 EPS were EUR 8.38, nearly four times the dividend of EUR 2.14. This leaves plenty of scope to keep increasing the dividend.
SEB is Increasing its earnings per share (EPS): Reported EPS over the last 5 years have been as follows: EUR 3.45, 4.14, 5.15, 7.50, and 8.38. Given SEB’s own recent forecast of a 6% to 7% rise in sales for 2019, I think profits and EPS should increase again this year. The company said in its Q3 2019 report, Outlook section, that it expects an increase in “Operating Result from Activity” of around +6% for the full year.
SEB has a Modest Price/Earnings (p/e) ratio: The share price (at the time of writing on Monday 30th December 2019) is EUR 133.50. With 2018 EPS of EUR 8.38, this gives us a trailing p/e ratio of 15.93, in line with the market and relatively cheap for a company with prospects of above average growth. That’s equivalent to an earnings yield of over 6%. Not bad considering alternatives like cash deposits in EUR.
SEB is a Mid-size company. The market cap is EUR 6.8 billion. Mid cap stocks are often over-looked by analysts, until they suddenly have a spurt, and become large-cap. Despite the rises in EPS, the shares have not participated in the 2019 rise in share prices. The share price stands at around the same level as two-and-a-half years ago. In my opinion this means the shares are over-looked.
Trading the shares is relatively easy. The average daily trading volume represents around EUR 8 million.
SEB has hundreds, if not thousands, of products. I prefer companies with multiple products or services. If one goes out of fashion, then another may be coming into favour. It’s kind of a safety net, so you know that you are not going to find that a large competitor has suddenly made something better than its only product. It won’t turn out to be the next MySpace or AltaVista.
The kind of products being sold by SEB are not going to go out of fashion. Housewives are not going to suddenly stop cooking their food or vacuuming the floor. We will always use toasters and coffee machines, ovens, trays and blenders. We will always need pots, pans, fryers, and so on. It’s relatively low tech stuff, but the demand is growing as the world becomes more affluent. Once you have used a Teflon non-stick frying pan, it’s hard to go back to the old style pan.
Conclusion: SEB has a lot of attractive features for investors. If this was a larger company, the multiple would probably be over 20X. With growing sales and EPS, it has the potential to become much larger. You may need to be patient, but for long term investors it has the kind of features you should be seeking.
SEB (SEB_A) | Money-Laundering Concerns! Keep an eye on ~60!Hi,
Shares of SEB' AB (Skandinaviska Enskilda Banken AB provides corporate, retail, investment, and private banking services in Sweden and internationally) fell by more than 14% (on Friday) as investors worried that another Nordic bank will be dragged into the scandal over money-laundering. It is hard to say, how the following weeks/months may affect the SEB price (investigations are ongoing) but anyway, I would like to point out a technically strong price level which should play an important role in further price action.
Currently, I can only recommend - stay away from it. The price can get more hits during the investigations, especially when these stories get firmer confirmations.
To talk about that price level - my eyes are pointed around 60. It needs to fall another ~25% to the mentioned level and definitely, it is doable. I don't want bad but as an investor and trader, I'm looking forward to this level because technically, it is a pretty strong and clean one.
Two other major Scandinavian banks, Swedbank and Danske, had already been subject to major investigations in large-scale money laundering activities and I would like to share a comparison with Swedbank, who has already gone through it (almost):
As you see, the historical similarities have been pretty amazing. Now, we can take this Swedbank price movement as an example (Swedbank price is the orange line) and it is pointed also to my mentioned "keep-an-eye" level 60. Let's count the other criteria which should act as support levels:
1) Okay, the comparison with Swedbank is pointed to the marked area.
2) 2000/01, 2011 clean resistance levels start to work as a support level.
3) The middle number 60 itself should work as a tiny support level.
4) Channel projection bottom trendline may push the price upwards from the green area.
5) Different Fibonacci Extensions are adding strength to the shown area.
6) Fibonacci retracement 50%. Pulled from 2009 low to 2015 high.
7) AB=CD
8) If the price reaches to the shown area, then it has fallen from the 2015 high at 111.50 to the ~55, which is 50% from the recent high and pretty often stocks make a bounce after they have fallen approximately 50%. So, it matching perfectly with our mentioned area.
9) Obviously, perfect would be a bullish Weekly or Monthly candlestick pattern formation around the green area!
Summary: As said, stories around the SEB' stock are serious which makes this stock extremely risky to invest/trade at the current price levels.
Be patient, wait for conclusions and if the conclusions are enough for you to be satisfied (after the price has reached ~60) then this could be a perfect spot and timing to invest or reinvest to SEB'.
What if it doesn't reach to the mentioned area? Nothing(!), the situation around Nordic banks is highly risky and I search only high-probability investment setups, not the mediocre ones. Mediocre setups can easily damage my success rate, especially under such conditions.
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Regards,
Vaido
