💡$AO. (LSE) 🚚 Good tailwinds for the online retailer💰+30%🏌️‍

٢٩ يناير ٢٠٢١

📖 AO is an electrical retailer operating in the UK and Germany and specialises in household appliances and electricals. Much like Ocado, its share price has benefited significantly from the CV19 pandemic, soaring by as much as 800%. 87% of ao.com reviews on TrustPilot are 5 stars and it is often praised for its great customer service. Sales in the UK rose 67% in the final quarter of 2020, reaching £457m. This was its best trading period ever, however they are also facing increasing costs to meet demand of the pandemic. Large white goods and appliances are very expensive to deliver end-to-end and also incur larger storage costs when compared to smaller electrical goods. It has a market cap of £1.6bn and its P/E is 62. There is lots of evidence to suggest consumer habits have changed significantly as a result of CV19, one of which being the willingness to buy large goods and appliances online. This could be a good tailwind for AO moving forward.

📈 AO is currently down 30% from its all time highs. Price has held inside of a bullish price channel from its March lows to its November highs. Yesterday saw a nice pin bar rejection of the lower price channel and also the completion of the 0.618 Fib retracement. On lower time frames, price is still bearish so you should watch for a break of this trend before considering going long. A break of the bearish trend could see a 30% move to the upside.

🔎This is not financial advice. Always do your own research and due diligence.