Easyjet PLC

Easyjet PLC (LON: EZJ) is an FTSE-250 index listed low-cost European point-to-point Airline Company. The Company has four geographic segments, which include the United Kingdom, Southern Europe, Northern Europe and Other.

Investment Rationale – WATCH at GBX 643.60

• Weak Top-Line Business: The top-line net revenue dropped by approximately 51.60% during FY21.
• Increase in Cost Levels: The Airline headline cost per seat grew by approximately 31% during FY21.
• Sizeable Correction in Stock Price: The Company’s stock price plunged by around 23.03% over the last one year.
• Unfavourable Technical Indicators: From a technical standpoint, the stock price is hovering between the upper Bollinger band and the middle Bollinger band, reflecting a bearish price momentum.

One Year Share Price Chart

 (Data Source: REFINITIV, Analysis by Kalkine Group)

Conclusion

Based on the weak financial performance during FY21, and a slowdown in the aviation industry, we have given a “WATCH” recommendation on Easyjet PLC at the current market price of GBX 643.60 (as of 17 January 2022, 01:08 PM GMT). However, for any profit booking scenario, buy and holding levels should be looked at as per the risk appetite of investors. 

Cake Box Holdings PLC

Cake Box Holdings PLC (LON: CBOX) is an FTSE AIM All-Share-listed UK-based franchise retailer and manufacturer of cakes. Moreover, the retail stores were operated under the brand Egg free Cake Box.

Investment Rationale – WATCH at GBX 340.00

• Slowdown in UK Retail Sales: According to the Confederation of British Industry’s (CBI) latest monthly Distributive Trades Survey, the UK retail sales experienced a slowdown in December 2021.
• Penny Nature: The stock price may demonstrate sizeable correction considering the penny nature of the stock.
• Rising Covid-19 Cases: The rising Covid-19 cases in UK may result in further restrictions and closure of retail stores.
• Unfavourable Technical Indicators: From a technical standpoint, the MACD line remained lower than the signal line, while the stock price is hovering lower than the 20-days exponential moving average of GBX 356.14. Thus, the stock price may decline in the near term.

One Year Share Price Chart

 (Data Source: REFINITIV, Analysis by Kalkine Group)

Conclusion

Based on the slowdown in the UK retail sales during December 2021 and unfavourable technical indicators, we have given a “WATCH” recommendation on Cake Box Holdings PLC at the current market price of GBX 340.00 (as of 17 January 2022 at 12:22 PM GMT). However, for any profit booking scenario, buy and holding levels should be looked at as per the risk appetite of investors.

Chill Brands Group PLC

Chill Brands Group PLC (LON: CHLL) is an international CBD (“Cannabidiol”) company that manufactures and distributes products across UK, US & Europe.

Investment Rationale – WATCH at GBX 16.00

• Volatile Stock Movements: The stock price plunged almost 79% over the last one year.
• Logistics Issues: The widespread international logistics issue had adversely impacted the pace of US rollout, which might hamper the top-line business of the Company.
• Loss-Making Nature: Despite reporting tremendous revenue growth during FY21, the Company’s net loss did not show any noticeable improvement.
• Unfavourable Technical Indicator: From a technical standpoint, a 20-days exponential moving average of GBX 16.61 indicates a bearish price momentum.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak profitability and penny nature of the stock, we have given a “WATCH” recommendation on Chill Brands Group PLC at the current market price of GBX 16.00 (as of 17 January 2022 at 12:54 PM GMT). However, for any profit booking scenario, buy and holding levels should be looked at as per the risk appetite of investors.

Omega Diagnostics Group PLC

Omega Diagnostics Group PLC (LON: ODX) is an FTSE AIM All-Share index listed medical diagnostics company focused on infectious diseases and food intolerance.

Investment Rationale – WATCH at GBX 16.89

• Weak Profitability: The net loss and EBITDA loss had widened during H1 FY22 when compared with the prior-year levels.
• Penny Nature: Considering the penny nature of the stock with small market capitalization, it can be exposed to market volatilities.
• Unfavourable Technical Indicator: From a technical standpoint, the 20-days exponential moving average of GBX 21.96 reflects a bearish price momentum.
• Reduced Cash Balance: ODX’s cash balance got reduced from £7.0 million at the end of H1 FY21 to £4.7 million as of 30 September 2021.

One Year Share Price Chart

 (Data Source: Refinitiv, Analysis by Kalkine Group)

Conclusion

Based on the weak profitability and reduction in cash balance, we have given a “WATCH” recommendation on Omega Diagnostics Group PLC at the current market price of GBX 16.89 (as of 17 January 2022 at 12:57 PM GMT). However, for any profit booking scenario, buy and holding levels should be looked at as per the risk appetite of investors.

*The reference data in this report has been partly sourced from REFINITIV.

*Dividend Yield may vary as per the stock price movement.

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