New Zealand King Salmon Investments Limited (NZK:NZ) Sees Flat Earnigns for 2020
Shares of New Zealand King Salmon Co Ltd NZK.NZ fall as much as 5.5% to NZ$2.050, their lowest since March 19, 2018
The salmon supplier expects FY20 fish harvest volumes to be about 8,000 metric tons, down from previous guidance of 8,700 MT, hurt by limited fish availability.
The company forecasts operating earnings before interest, tax, depreciation and amortisation of $25-28.5 million in the year through June 2020. King Salmon expects ebitda to be at the lower end of a $25-28.5 million range for the 2019 June year.
The company said harvest volumes will likely be about 8,000 tonnes in the coming year, slightly higher than what it anticipates for the 2019 harvest, with sales weighted to the second half.
That’s a small improvement from its earlier 2020 prediction of 7,900 tonnes when it downgraded its forecast from 8,700 tonnes as persistently warmer water led to more fish deaths.
King Salmon previously flagged that warmer water temperature had dented its first-half earnings and has signalled it wants to be at the forefront of the government’s efforts to address climate change.
Last month, it outlined several initiatives it had underway to mitigate the impact of climate change, which would lift its capital spending and reduce harvest volumes for the next few years.
Today, the company said capital spending will be about $17 million for the year ending June 30, rising to $20 million next year as it introduces new infrastructure to improve fish survival and performance.
Separately, Chiong Yong Tiong was appointed to the board as a representative of cornerstone shareholder Oregon Group, effective from June 19. King Salmon’s founding director Thomas Song died in April following a sudden illness.
King Salmon shares last traded at $2.17, and have declined 7.7 percent during the past 12 months.
Stock down 4.8% this year, as of last close.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 2.34.
The projected upper bound is: 2.37.
The projected lower bound is: 1.81.
The projected closing price is: 2.09.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 21 white candles and 25 black candles for a net of 4 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 25.0000. This is not an overbought or oversold reading. The last signal was a buy 0 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 33.75. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 30 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -360.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 10 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.
Rex Takasugi – TD Profile
KING SALMON closed down -0.070 at 2.100. Volume was 134% above average (neutral) and Bollinger Bands were 43% narrower than normal.
Open High Low Close Volume___
2.140 2.140 2.050 2.100 166,240
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 2.18 2.43 2.44
Volatility: 28 69 43
Volume: 73,714 81,538 52,992
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
KING SALMON gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
KING SALMON is currently 13.8% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect very strong flows of volume out of NZK.NZ (bearish). Our trend forecasting oscillators are currently bullish on NZK.NZ and have had this outlook for the last 2 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.