Positive signals from Stockomendation
We hope you are fit and well during this time.
I just wanted to give you a quick update of the performance of the Trading Signals service.
The UK market rose by 6.6% in April, whereas new signals from our Trading Signals service outperformed the market by an average of 15%, creating an absolute return of 22% for our subscribers who acted on the signals.
The service identified 4 new buying opportunities which we will discuss further on in this email.
So far in May, there have been no signals identified because the platform takes a myriad of highly complex calculations to identify a trading signal and the minimum requirement thresholds for a signal to be generated has not yet been reached this month.
The crash has meant that the system has cleverly ‘throttled’ itself back in that search and is being patient to flag the next opportunity for our eager subscribers.
So, if you are a subscriber then please keep an eye out for your email alert with the next generated signal. If you are not a subscriber then you can upgrade your package here.
The first opportunity that was emailed to our Trading Signal members was AstraZeneca (AZN) on the 6th April. This was a recommendation made by Liberum Capital who issued a target price of 8,870p, 24% above the price of 7,144p on the 6th. AstraZeneca subsequently announced on the 14th that it had a new cancer drug that could potentially be used to treat COVID-19 and shares rocketed consistently throughout the month.
The tip hit its price target and closed up 24.26% on the 13th May. We will await updates to see if it has further to run.
Second up was Auto Trader Group (AUTO) on the 16th of April by UBS who issued a target price of 510p again 27% above the then current price of 402.9p. The shares rose quickly after they announced a plan to offer free advertising packages to businesses. It closed up 28.77% on the 11th May.
Third was Oxford Biomedica (OXB), again by Liberum Capital, on the 28th who issued an ambitious target price of 1,090p, 49% above the then current price of 730p on the 28th. OXB’s managers have stated that they have not been impacted significantly by the coronavirus outbreak and is currently sitting at a 52 week high.
It is yet to be seen whether it can continue its trend of success. The signal is still open and is currently sitting up approximately 8.49%.
We recommend cross-referring this trading signal with other market indicators and tips on Stockomendation and other platforms. This stock appears to be well supported by major brokers. https://www.stockomendation.com/companies/oxb-oxford-biomedica
However, off the back of positive news and the continuation of the strong momentum it has been seeing in the recent years the shares rose quickly and closed up 13.25% the following day.
The table below highlights the returns you could or may have gained by acting on all the Stockomendation Trading Signals in April.
Trading Signals Generated in April
Historic signals closing in April
There were 11 historic signals (generated in previous months) that closed out this April. They had an average performance of 1%, which is much lower than previous long-term performances for the Trading Signals, many generating returns of over 20%.
This was due in the majority, and not unexpectedly, to the impact of covid-19 in the preceding months which has caused the worst stock market crash in recent times, eclipsing the fall caused by the 2008 financial crisis.
When we look at the Trading Signals performance vs the market in 2019, we see a significant outperformance.
This is demonstrated by the new and closing Trading Signals in April, which produced an average return of 20% (13% above the market).
If members combine Trading Signals with a low-cost execution model, then the service becomes a must-have and incredible investment in its own right.
Relative Movement of Trading Signals
Signals that closed in April
April Performance vs Market
In summary, examining the relative change in value of both the signals that were created and those which ended in April, we can see that they have strongly outperformed the market by 13% over the month.
Best wishes, stay safe and well.
Founder and CEO
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EQi is a DIY investing platform designed for individuals. It gives you access to global markets, control over your investments and offers customers award-winning support.
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