could be inverted head and shoulders developing at those double tops...see the cfd chart thread
Thanks for the TA. It would be interesting if the inverted head and shoulder plays out. According to the South African market insights website they value the share at R22.80 after the 16 April results.
The share price is currently R25.00 already above the valuation. Head and shoulder neckline will be at R26.00.
EOH (EOH) share valuation
To be honest we are not too keen on providing a valuation on EOH based on their current issues that they are involved and embroiled in and would much rather comment once all of this has been cleared up. But we will provide a valuation on EOH based on the latest results released. We currently value EOH shares at R22.8 a share, a little bit below their stated net asset value. Part of the reason for this is the fact that a large chunk of their net assets is made up by goodwill. In fact goodwill according to their books is worth R3.185 billion (down a whopping R1.2 billion from a year ago). And with that in mind and all their present issues, who is to say the total value of their goodwill wont decline further pushing their stated net asset value down. But there are some positives in the results, and cash makes up a fair chunk of the current share price, and there is a bit of cash being generated by the group. And when we throw all things thinks into our pot, we value the group at R22.80 a share, with a massive disclaimer that we advise investors to be VERY cautious around EOH shares. And that we would have preferred not to do a valuation until all the business ethics issues and full impact of Microsoft Channel agreement being cancelled has filtered through.