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MULTICHOICE for JSE:MCG by agentfielding

Some background :
JSE (listed) 27Feb19 as an unbundling from NASPERS.
Multichoice is mostly Subscription based so bulk guaranteed income every month from subscribers.

Is this the start of a possible takeover ? :

French media company Groupe Canal+ SA (“Groupe Canal+”) increases their stake in MCG to 6.5% and then top’s it up to 12% (on 5oct20 & 20oct20 respectively), and off-course the positivity

of this news creates a jump Of 35% in 21 days.

REVIEW:

A.) Trading statement on SENS 4jun21 : very good results posted.

B.) Financials on SENS 10jun21 : good financials & DIV declared.

Last day to trade (LDT) : 7sep21

Ex-div : 8sep21 (R5.65 payout).

C.) Technical review on MONTHLY CHART :

Aug19-> Mar20 : Distribution phase then a mark-down phase.

Bottoms at R72.28 (a low point in mar20 , after covid news spooked the planet)

Mar20> current : Clear Elliot wave 1 to 4. Currently looks like a low of wave 4.

D.) Technical review on DAILY CHART :

26oct21 -> 12jan21 , distribution and mark-down phase. Completes 12may21.

Nice impulse wave follows (Wave 1), and then the retracement (wave 2) down to Fibb 78%.

Sends its feelers (the negative part of the wick) to where Bulls don’t like it.

We re currently at the 78% Fibb low. It looks like it is bottoming out around this level and offcourse,

the US FED meeting and then the news making making a bit much of this than what it really is. Old news. Move on people!

E.) Intraday review : 17jun21

A buy volume of 3.8mil shares bought around 12h15pm (GMT+2) (average daily volume is around 1.7mil shares/ day), so something is brewing.

On 27may21 a total of 9.89mil shares changed hands which is an unusual spike.

Hopefully the brew is “WAVE 3”. Time will tell. The markets certainly are digesting US FED news and figuring out what to make of it.

SUMMARY (13h30 – 17/6/21)

50sma : R128.32 ; 65sma : R128.42 ; 200sma : R125.26

WAIT for a buy signal before committing. Like a break above the 50day MA (R128.32) and break above R132.15(previous high).

Currently the price is hovering just under the 200SMA (R124.57) so, wait to see what the market does in the next few days.

If it breaks above R129 (38fibb) , my first target is R132(62 fibb), R135(78fibb), then R145.00 then R156.00, then R165, then R175 all based on channel on trendlines .

How long it will take to get to +-R179. I’m not sure. I believe there will be some retraction from 1st week in sept21. (LDT = 7sep21)

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