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$. I doubt we won't see a strong rebound from that level but in the worst case I'll keep the stocks and I'll get a good dividend.
Enjoy the Week-End.
Nota
We got the first Target Area but I doubt 
PARA won't touch the 200MA around 39.40$. 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.
Nota
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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Declinazione di responsabilità
Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.