Strong Support Area between 35$ and 40$
Fundamentals:
2 main reasons VIAC dropped so badly. 1) 5% Stocks dilutions (30M Stocks at 85$ and Viaconcbs raised almost 2.6B$ ) 2) Hedge funds Margin Call.
5% dilution could see a 10% drop in the stocks, not more, considering that the company raised some good cash to invest in the business. Let's say 9$ drops from 85$ = 76$ (Fair value after dilution if Viacom is going to burn the cash they raised with a bad investment) .
The people that say that there is not enough space to grow in that market are the same analysts that consider Netflix "undervalued" at 240B$ market value, vs 26B$ Viacomcbs Market value and with the same income, operating margins and revenue than Viacomcbs. So, if there is enough margin of growth for Netflix(considering its huge valuation) I guess there is even much more room for Viacomcbs.
T.A.
Considering the Huge drop in the stock price we should consider deeper supports and higher resistances.
I can see a strong support area between 35$ and 40$. 35$ also means an 8% Dividend Yield. I, personally, started a small entry at 42$, not because it was a strong support area but because I see it as a good investment and the actual price level is just because of the huge speculation at this moment and in these situations, sometimes, Supports and Resistances levels can be meaningless. . In fact, the strong support area at 50$ was broken without even trying to test it again.
Next Buy points: around 40$ then around 37$ and then double down around 35$. I doubt we won't see a strong rebound from that level but in the worst case I'll keep the stocks and I'll get a good dividend.
Enjoy the Week-End.
2 main reasons VIAC dropped so badly. 1) 5% Stocks dilutions (30M Stocks at 85$ and Viaconcbs raised almost 2.6B$ ) 2) Hedge funds Margin Call.
5% dilution could see a 10% drop in the stocks, not more, considering that the company raised some good cash to invest in the business. Let's say 9$ drops from 85$ = 76$ (Fair value after dilution if Viacom is going to burn the cash they raised with a bad investment) .
The people that say that there is not enough space to grow in that market are the same analysts that consider Netflix "undervalued" at 240B$ market value, vs 26B$ Viacomcbs Market value and with the same income, operating margins and revenue than Viacomcbs. So, if there is enough margin of growth for Netflix(considering its huge valuation) I guess there is even much more room for Viacomcbs.
T.A.
Considering the Huge drop in the stock price we should consider deeper supports and higher resistances.
I can see a strong support area between 35$ and 40$. 35$ also means an 8% Dividend Yield. I, personally, started a small entry at 42$, not because it was a strong support area but because I see it as a good investment and the actual price level is just because of the huge speculation at this moment and in these situations, sometimes, Supports and Resistances levels can be meaningless. . In fact, the strong support area at 50$ was broken without even trying to test it again.
Next Buy points: around 40$ then around 37$ and then double down around 35$. I doubt we won't see a strong rebound from that level but in the worst case I'll keep the stocks and I'll get a good dividend.
Enjoy the Week-End.
ملاحظة
We got the first Target Area but I doubt 
PARA won't touch the 200MA around 39.40$. I bought a bit more at this level. Now we'll see if Viacomcbs will dip lower till stronger support around 37$ (where I'll buy more). My thought is that the 35$-40$ area is a good accumulation area. I know it's large but this stock has a very wide movement. We'll see.
ملاحظة
Still in Accumulation. As I wrote It got 39.40$ and I bought some more stocks. The 35$-40$ area is quite large but, as I wrote, after a drop of this magnitude (-61%) the stocks will need some time to find a base. Ready to buy more in the 37$ area but from now, it's possible a rebound.
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إخلاء المسؤولية
لا يُقصد بالمعلومات والمنشورات أن تكون، أو تشكل، أي نصيحة مالية أو استثمارية أو تجارية أو أنواع أخرى من النصائح أو التوصيات المقدمة أو المعتمدة من TradingView. اقرأ المزيد في شروط الاستخدام.