Texas Instruments Incorporated : Lost strenghts
By Alexandre Nutte
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
US$30.63 | US$0 | US$31.4 | +100% |
A $3.24 billion, order book was reduced by 9% in annual comparison. If the recovery of the group's activity is progressive, the share is always penalized on the stock exchange. According to analysts polled by Thomson Reuters, earnings per share are regularly revised downward.
Besides, the company is trading at very high level as shown by the “enterprise value/revenue” ratio estimated at 2.56x and the PER is 20.3x for 2012.
Graphically, since the test of the USD 34 resistance, the stock is crumbling. The 20-days moving average is a significant barrier and the fall seems to accelerate as shown by the recent bearish gap.
In this case, investors could take a sell position at the current price to target the USD 27.8 support. A stop-loss will be fixed at USD 31.4.