Tag: Royal Bank of Scotland

$HLF and $RBS may have bearish sentiments in the longer run

HLF – Herbalife Ltd ,  a global nutrition and weight management and direct selling company, traded 12.76% higher during pre-market today. It may be bearish in the medium – long term.

HLF – Herbalife Ltd
Fundamentals Previously closed at 45.76
Day’s high 46.55
Day’s low 45.16
P/E ratio 10.9
EPS 4.2

 

Analysts opinion HLF has a P/S ratio of 0.94, P/C of 5.21 and Current ratio of 1.40. Its P/E is below the S&P 500 companies whose P/E is 17.
Sentiments Yesterday, HLF recorded a high trading volume of 1.56 million shares and it is currently trading 7.6% below its 50 day moving average. It announced Q4 earnings today – $84.5 million or $0.98 per share, down from last years $103.3 million. It beat analysts’ expectations by 25 cents. Due to this, the share prices have risen pre-market.
Also, Herbalife is in Talks with the Federal Trade Commission (FTC) to resolve probe. HLF remained very opaque in its announcements and said that it is in discussions regarding a potential resolution of the matter. It also acknowledged that the possible outcomes may range from monetary settlement, to  closure without action from the FTC.
Social Pulse The stock has 5% lower social chatter than usual.

 

RBS – Royal Bank of Scotland Group PLC,  announced yet another year of losses, and pushed their dividends, post which the shares plunged. It is expected to be further bearish in the short term.

RBS – Royal Bank of Scotland Group PLC
Fundamentals Previously closed at 6.86
Day’s high NA
Day’s low NA
P/E ratio NA
EPS -1.25

 

Analyst opinion RBS is currently undergoing restructuring, and are expecting more restructuring costs. They have high debt levels with a D/E of  1.0, and overhang from U.S mortgage settlement. It has a P/B ratio of 0.48 and a P/C ratio of 0.07, which seems to be the only good indicators for the stock.
Sentiments Today, during the announcement of its 2015 revenue reports, RBS posted its 8th straight annual loss in a row. It said that it expected declining income in the year 2016. Increase in the restructuring costs and litigation and conduct costs may be the major reasons for this. RBS also pushed their dividends to the next term and spoke of cost cutting via salary reductions.
RBS makes 90% of its income in the U.K and Ireland, so the Brexit uncertainity weighs strongly on the firm. 63% Analysts give a buy rating for RBS in the longer term.
Social Pulse The stock has 80% higher social chatter than usual.