Sector: Consumer Cyclical
Strategy: BGS 20 Strategy
Sentiment: we remain positive and bullish in our position despite this short term drop due lockdowns.
AMA Group is a Vehicle aftercare and accessories market, including smash repair shops, automotive and electrical components, vehicles protection bull bars and other servicing workshops for brakes and transmissions.
Company has been highly affected by COVID-19, SP fell incredible 97% on Covid-19 lockdown, making a great recover so far and currently trading 49% down from its pre-covid level.
The company managed to normalise FY20 EVITDA, better than anticipated going into COVID-19 and now all the states are currently operating at or near pre COVID levels.
The company’s Growth Strategy includes:
Market share growth via consolidation in panel repair;
Expansion via integration of vehicle parts sector;
KEY ELEMENTS AT THE MOMENT (See chart)
SP still 40% lower than Pre-Covid levels at the last death cross. (See chart)
SP has been bullish since April, with SP in clear uptrend
The volume on downside has increased, which is negative, ideally we would like to see a bounce back from the current levels.
Consumer cyclical is a sector prompt for recover in 2021.
Heiken Ash has weakened on way up and start showing a short term bearish formation.
SP has definitely been affected by last few lockdowns in Sydney, Brisbane and Melbourne. Provided a vaccine proves effective and the thread of lockdowns are gone, we have no doubt SP should reach new highs.
WHAT TO WATCH
75c is a critical level, ideally we would like to SP holding above and bouncing back to new highs.
*Disclaimer: Note that although we have been investing in the Australian Stock Exchange and other markets for over 10 years, anything you read within this group is NOT financial advice; it is general information only and we strongly recommend to consult a financial adviser before making any investment decision that could have a significative impact on your wealth*