A moving average (MA) in finance is a stock indicator that helps smooth out the price data over a specified period of time by creating a constantly updated average price. Instead of looking at a candlestick representation of a stock price over time, the MA, offers a smoother, different perspective, which may show up patterns which can’t usually be seen. Moving averages can also indicate where the stock might by over bought or oversold. The overbought & oversold identification is easier seen when comparing two different MA periods, 20 day and 200 day for example. Bollinger bands can indicate overbought and oversold situations. The MA can help filter out the noise from random price movements, and as well as identifying trends, it can confirm reversals. When the price is above the MA line this is an uptrend and below the MA line a downtrend/ trend reversal. The MA can also be considered as an indicator of support and resistance. When the price is above the moving average this can be an indicator to buy, and when it’s under the moving average line this could be time to sell.
Price Earnings Ratio – PE Ratio – Price to Earnings Ratio
This calculates the market value of a stock relative to its earnings. The price earnings ratio shows what the market is willing to pay for a stock based on current earnings.
Balfour Beatty is a leading international infrastructure group. They finance develop, build and maintain vital infrastructure that we all depend on in the UK and other parts of the world. Shares in Balfour plunged 52.35p to 172.55p in September 2014 due to programme slippage, resource and skills shortages, poor operational delivery and cost inflation pressures. As soon as the 3rd quarter profits in 2014 were announced the shares plummeted massively.
What is an IPO?
An IPO is the first time that the stock of a private company is offered to the public. IPOs are often issued by smaller, younger companies seeking capital to expand, but they can also be done by larger companies looking to become publicly traded. IPO stands for initial public offering, and is essentially a company issuing equity to potential shareholders for a price. Continue reading Best IPO’s of 2016 broken down