Financial Trading Blog
Stock of the day 18/05/2016 – Merlin Entertainment PLC
Having closed 2015 at £4.55, a fairly remarkable feat given it was almost a pound lower back in December, Merlin immediately found itself in trouble as the New Year began. The volatility that enveloped the market at the start of 2016 left very few stocks unscathed and Merlin was no expectation, plunging to £3.79 (its worst price since October) by the beginning of February.
(Source: IT-Finance.com 18/05/2016)
However, Merlin saw a pretty healthy rebound in the back end of February, one capped off by the surge that greeted its full year trading update. Despite a drop in visitor numbers following the rollercoaster crash at Alton Towers last June the company still managed to eke out a £1 million rise in pre-tax profit to £250 million. Resort theme park sales understandably suffered across the year, dropping by 12.4%, but were partially offset by the 8% rise in revenue per reveller at Legoland (with the company outlining its target for 4 new parks by 2020, including the 2016 open of the first in Dubai).
With investors suitably satisfied Merlin Entertainments rose to £4.71 by the start of March, a fraction away from the £4.73 all-time peak struck in May 2015. A relatively steady 6 week period then saw the stock flit between £4.60 and £4.65, only to tumble towards the end of April as the company pleaded guilty to breaching health and safety laws in regards to the Alton Towers crash. Since then the stock’s slide has continued at a fairly gradual pace, leaving Merlin Entertainments at a current trading price of £4.27 (IT-Finance.com, 18/05/2016).
In terms of its first quarter update Merlin will likely be looking to put 2015 behind it, instead focusing on the key upcoming summer period as it tries to coax customers back into its brand-damaged theme parks.
Merlin Entertainments PLC has a consensus rating of ‘Buy’ with an average price target of £4.75.
It's easy to open an account
- Fill in our simple online application form
- Fund your account
- Start trading the global markets instantly!
SEARCH FOR AN ARTICLE:
Enter a keyword and search for all relevant articlesMARKET ANALYSIS
RECENT POSTS
DISCLAIMER
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 64% of retail investors lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. For professional clients, spread betting and CFD trading can also result in losses larger than your initial stake or deposit.
Spreadex Ltd is authorised and regulated by the Financial Conduct Authority, provides an execution only service and does not provide advice in any way. Nothing within this update should be deemed to constitute the provision of investment advice, recommendations, any other professional advice in any way, or a record of our trading prices. This update does not constitute or form part of an offer of, or solicitation for a transaction in any financial instrument, nor shall it or the fact of its distribution form the basis of, or be relied on in connection with, any contract therefore. Any persons placing trades based on their interpretation of the comments or information within this update does so entirely at their own risk.
No representation, warranty, or undertaking, express or limited, is given as to the accuracy or completeness of the information or opinions contained within this update by Spreadex Ltd or any of its employees and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions. As such, no reliance may be placed for any purpose on the information and opinions contained within this update.
The information contained within this update is the intellectual property of Spreadex Ltd and is protected by UK and International copyright laws. All rights reserved. Users may however freely download, distribute and reproduce extracts of the contents, subject always to accrediting Spreadex Ltd as the source and providing a hyperlink to www.machibet77.com.
