Saab AB (publ) (SAAB-B.ST) HEFFX Shayne Heffernan Strong Buy Stock
Saab Defence and Security | It’s a human right to feel safe
Saab AB
Ticker: SAAB-B.ST
Price: SEK 234.30
Saab has together with the Swedish Defence Materiel Administration (FMV) and Swedish Armed Forces conducted the first tests with the Saab Lightweight Torpedo (SLWT) from a corvette and a submarine.
The tests are the first of its kind for the new torpedo and were undertaken during February and March 2020 at sea ranges outside Karlskrona, on Sweden’s east coast in the Baltic Sea. The tests were conducted from a Gotland-class submarine and from a Visby-class corvette. The purpose of the firings was to verify that the torpedo can be safely launched from the vessels, which also included verification of the integration on the vessels as well as SLWT’s target seeker.
“The Saab Lightweight Torpedo will provide the Swedish and Finnish Navy with the ability to deter and if necessary destroy hostile underwater and surface threats. Having completed these tests successfully is a major milestone in this joint project,” says Görgen Johansson, Head of Saab’s business area Dynamics.
The development of the torpedo commenced with an order from the Swedish Defence Materiel Administration (FMV) in 2016, and is to be deployed on Sweden’s submarine fleet and corvettes. In January 2018, the Finnish Navy placed an order for the SLWT, as a part of the Squadron 2000 Mid-Life Upgrade Programme. The Finnish Navy will operate the system on-board the upgraded Hamina-class vessels as well as the new Pohjanmaa-class corvettes of the Squadron 2020 Programme.
The SLWT is unique in the way that it is adapted for difficult littoral underwater conditions such as those found in the Baltic Sea while also being designed for operations in deeper seas. With its state-of-the-art design, it incorporates a fully digital homing system, which offers both fire-and-forget and wire-guided operation to pursue the target. It is a flexible system that can be launched from multiple platforms, including surface ships, helicopters, fixed-wing aircraft and submarines.
Business Summary
Saab AB is a Sweden-based company offering products and services ranging from military defense to civil security.
The Company’s operations are divided into six business areas.
The Aeronautics includes the development of civil and military aviation technology, including the Gripen and Unmanned Aerial Systems.
The Dynamics comprises a product portfolio of weapon systems, such as support weapons, missiles, Remotely Operated Vehicles and signature management systems.
The Electronic Defense Systems provides airbone, land-based and naval systems and radar, signals intelligence and self-protection.
The Security and Defense Solutions provides the military and civil security market with, among others, computerized command, control, communications and intelligence systems.
The Support and Services offers service and support to the Saab’s clients. Among others, the Company operates through Thyssen Krupp Marine Systems AB and Nordic Defence Industries, a producer of mine disposal charge systems.
Shayne Heffernan Trade Idea
“Our current price target of Saab AB will come in around SEK 336.88 with a long-term growth of 9.70%.”
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 228.44.
The projected upper bound is: 260.11.
The projected lower bound is: 210.65.
The projected closing price is: 235.38.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 20 white candles and 29 black candles for a net of 9 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
Momentum Indicators
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.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 62.6667. This is not an overbought or oversold reading. The last signal was a buy 2 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 52.22. 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 sell 8 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 -52. This is not a topping or bottoming area. The last signal was a sell 7 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 5 period(s) ago.
Rex Takasugi – TD Profile
SAAB B closed down -2.800 at 234.300. Volume was 34% below average (neutral) and Bollinger Bands were 25% narrower than normal.
Open High Low Close Volume 236.200 237.400 230.600 234.300 463,763
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 239.86 219.44 271.01 Volatility: 64 73 54 Volume: 619,859 660,676 517,828
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.
Summary
SAAB B is currently 13.5% below its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods.
Our volume indicators reflect volume flowing into and out of SAABb.ST at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on SAABb.ST and have had this outlook for the last 46 periods.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of the Stockholm Stock Market.
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Sources:
Saab Company Website
Thomson Reuters Metastock and Eikon financial tools
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