Unilever Share

robertbanking

Hello everyone, hope you are having a relaxing Sunday.

I have researched the share Unilever in the UK and believe it has a strong competitive advantage and its revenues will continue to grow. Selling many essential brands that are purchased regular by consumers. However sites like Walletinvestor state over 1 year the price will drop from 3786 GBX to 3703 GBX. Does anyone kindly know please how this has been calculated, is this a technical analysis of the share graph please, what elements of the share price graph and trade volumes indicate this could fall over 1 year please?  

Thank you for any support you can give, i would be very thankful. Enjoy the rest of your weekend. All the best. 

benbay001

robertbanking said:

Does anyone kindly know please how this has been calculated, is this a technical analysis of the share graph please, what elements of the share price graph and trade volumes indicate this could fall over 1 year please? 

It wont be looking at chart patterns, it will be a discounted cash flow forecast, of estimated future cash flows.

https://www.youtube.com/watch?v=jfcRUzKZZE8 - DCF explained

Thrugelmir

To understand a forecast price. You need to read the full analysts report. Sales, margins, reorganisation costs, cost pressures, ability to increase product selling prices etc etc will be factored in how the price is determined. Unilever is a solid but unexciting company. One I'd hold within a collective vehicle rather than as a individual share. The top companies are so well analysed that unless a share price falls and becomes cheap. Due to say an overhang of stock that creates a price anomaly for a short period. You'll always be behind the curve when trading. 

wmb194

Thrugelmir said:

To understand a forecast price. You need to read the full analysts report. Sales, margins, reorganisation costs, cost pressures, ability to increase product selling prices etc etc will be factored in how the price is determined. Unilever is a solid but unexciting company. One I'd hold within a collective vehicle rather than as a individual share. The top companies are so well analysed that unless a share price falls and becomes cheap. Due to say an overhang of stock that creates a price anomaly for a short period. You'll always be behind the curve when trading. 

There was a good opportunity for a few days a week or so ago to pick Unilever up at a discount when the market balked at the GSK deal. This happens more regularly than assumed with many of the big companies.

Thrugelmir

wmb194 said:

Thrugelmir said:

To understand a forecast price. You need to read the full analysts report. Sales, margins, reorganisation costs, cost pressures, ability to increase product selling prices etc etc will be factored in how the price is determined. Unilever is a solid but unexciting company. One I'd hold within a collective vehicle rather than as a individual share. The top companies are so well analysed that unless a share price falls and becomes cheap. Due to say an overhang of stock that creates a price anomaly for a short period. You'll always be behind the curve when trading. 

There was a good opportunity for a few days a week or so ago to pick Unilever up at a discount when the market balked at the GSK deal. This happens more regularly than assumed with many of the big companies.

Then you dive in only to find another 5% subsequently gets wiped off the share price. Ideally you need to set your own buying price and wait to buy. On many occasions an individual share price never falls back to my buying price. So I end up buying something else instead. Normally I have around 15-20 shares on my tracking watchlist. 

wmb194

Thrugelmir said:

wmb194 said:

Thrugelmir said:

To understand a forecast price. You need to read the full analysts report. Sales, margins, reorganisation costs, cost pressures, ability to increase product selling prices etc etc will be factored in how the price is determined. Unilever is a solid but unexciting company. One I'd hold within a collective vehicle rather than as a individual share. The top companies are so well analysed that unless a share price falls and becomes cheap. Due to say an overhang of stock that creates a price anomaly for a short period. You'll always be behind the curve when trading. 

There was a good opportunity for a few days a week or so ago to pick Unilever up at a discount when the market balked at the GSK deal. This happens more regularly than assumed with many of the big companies.

Then you dive in only to find another 5% subsequently gets wiped off the share price. Ideally you need to set your own buying price and wait to buy. On many occasions an individual share price never falls back to my buying price. So I end up buying something else instead. Normally I have around 15-20 shares on my tracking watchlist. 

Maybe. Maybe not. But this was a silly approach and seemed obvious that it would pass. These sorts of opportunities arise quite regularly. Any time Vodafone approaches 100p it begins to be tempting... And what do you know? This a highly analysed company and whatnot...