Itv Share Discussion Threads

[vlad the impaler] 28/6/2022 19:58

5000 troops will be 6 inches from the finnish border soon "on a peace mission " 😂

[vlad the impaler] 28/6/2022 19:45

And of course, Sachs and JPM only on approach

[vlad the impaler] 28/6/2022 19:43

ITV would have been same

[vlad the impaler] 28/6/2022 19:41

Alas, shorting RR this morning when FTSE was1.2% up on its 3rd day up in this environment, was probably the lowest risk trade on earth today

[vlad the impaler] 28/6/2022 19:40

Bad enough when you see one of them lol

[vlad the impaler] 28/6/2022 19:35

Funny. Saw those on a particular GS monitor one day

[huckers] 28/6/2022 19:33

Thanks Nige. I think that’s a useless article though! I love their reference to AI and they then go on to offer absolutely no insight from it at all. All their technical analysis metrics are meaningless as well. No one who knows charts would use an RSI, MACD or some such!

[nige co] 28/6/2022 19:20

The Armchair Trader

ITV (LSE:ITV) is now one of the most liquid stocks in the FTSE 250 index, but it is firmly out of the senior FTSE 100 index. Since its demotion a few weeks ago, shares in ITV have continued to slide. We have argued previously on this site that ITV is in an evolve or die situation. In an era when analysts and investors are losing the love for Netflix and Disney+, ITV will need to come up with something special to remain relevant.

ITV shares are being hammered – down 46% over the 12 month period, and now off a staggering 62% over five years. While the stock had managed to claw its way back from a pandemic low to around the 130p level last year, it has been downhill ever since. We ran the numbers through the AI engine at Deshe Analytics in Tel Aviv to see if machine learning could throw up any lights at the end of the tunnel for ITV investors.

Insights from artificial intelligence on ITV stock

Personally I love running stocks through massive data processing engines as they can deliver insights human analysts cannot. In this case we can also get some informative comparative grades for ITV shares against competitors in the UK market.

There’s some good news and some bad news here. First the good news.

ITV shares are looking cheap, with a PE ratio of 6.1x vs 8.1x at last filing date. This is not surprising given the stock has literally halved in price since the great demotion and the exit of all that index fund money. We saw heavy and automatic selling on the back of that event and really a new level for the stock which it is showing no danger of breaking out of. The technicals are pointing to some fairly rangebound behaviour as the market waits on news from ITV management. Even some heavy buying volume on 17 June failed to shift the stock by much.

Overall the company looks in relatively good health given its fundamentals. Return on equity and net cash flow are down however, as is the free cash flow, for which it should also be marked down. Deshe is scoring ITV a mere 45% for free cashflow which probably contributes more towards its Hold rating from the AI than anything else in the ITV numbers right now.

Technical analysis and cash flow working against ITV

When run against peers in the same sector, ITV’s cashflow looks less than impressive – it should be rating at least a 70%, but it’s struggling to hold 65%.

The decline in equity and loss of really any momentum is also flagged up. ITV’s stock is now priced below its 5-day, 50-day, and 200-day moving average, while its MACD (moving average convergence divergence) indicates that the stock’s price movement momentum is weakening. Historically, this is a negative setup in the near, medium, and long-term. The company is trading near it’s 12-month low, which signals it is struggling to keep above its support price. Meanwhile, looking at the Stochastic Oscillator and RSI (relative strength index), ITV’s stock indicates that it’s likely oversold.

Obviously the AI does not understand the stock has been removed from an index, an action that in itself has reinforced negativity around the ITV share price.

The metrics suggest that despite its cheap PE rating ITV is not a buy at the moment, while Berenberg downgraded ITV to “Sell” back in April and Barclays, JPMorgan, Goldman Sachs and Credit Suisse all cut their target price in March. You might want to hold ITV shares for the dividend price, but to answer our own question we anticipate the share has further to fall. ITV will have its work cut out to get back into the FTSE 100, and to be honest, we can’t see this ship being turned around.

[mikescotchegg] 28/6/2022 18:57

Thanks for sharing, Nige. And thanks for the balance, BOIX. This is what I'm here for, so please keep it up. Cheers

[huckers] 28/6/2022 18:33

The proximate cause of the failure to sell the business sounds to be that Walgreens were simply not made a big enough offer.

[vlad the impaler] 28/6/2022 18:05

Wow..serious ramifications there

Don't mean itv. In general

[boix] 28/6/2022 17:49

No one can get financing
Sky news .. The owner of Boots the Chemist has abandoned the sale of Britain’s biggest high street pharmacy chain amid torrid conditions in global debt-financing markets.
Some companies do have financing ready for aquisitions but I think ITV are in the wrong stage of their cycle?

[nige co] 28/6/2022 07:51

UK firms still in private equity crosshairs

Private equity’s hunt for cheap British companies looks set to continue, according to analysts at Canaccord Genuity, who have drawn up a list of 100 businesses whose value and growth potential could make them takeover targets.

Future, the media group, DS Smith, the packaging firm, and Hikma, the drugs company, are included in a list of 12 particularly attractive possible targets for predators looking for cash-generative but undervalued businesses.

A wider roll-call of companies with appeal includes the household names ITV, Next, Greggs, BAE Systems, Britain’s biggest defence company, and Flutter, the owner of Paddy Power and Betfair.

Last week’s news that Astorg and Epiris, two buyout groups, had approached Euromoney Institutional, the FTSE 250 publisher, with a proposal worth £1.6 billion underlined that a

Continue reading....

[blackhorse23] 27/6/2022 16:05

Bought MCB (LSE) , excellent value

[nige co] 27/6/2022 15:47

Very low volume day so far at less than 4 million.

[vlad the impaler] 27/6/2022 14:39

Best way anyway

[diku] 27/6/2022 11:45

Volume across the board suggest smart money holding back...currently traders market ...in/out...

[boix] 27/6/2022 10:44

Looks like ITV has failed to retake 70p.
Not a good sign given opening market strength.
Now retest 60/61p?
Let’s hope not.
Overall US markets have either just had a bear market rally (could go higher??) or they have found a bottom? Jury is out as definitive answers yet.

[deanowls] 26/6/2022 07:55

Yesterdays woman.

[diku] 25/6/2022 21:59

What happened to Claris benedicta?...