Interactive Investor

Are shares in this European giant a big deal?

Not far off a two-year high, shares in this multi-billion euro business look interesting. Independent analyst Alistair Strang gives his view.

14th May 2024 07:52

by Alistair Strang from Trends and Targets

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There cannot be many companies who can trace their lineage back to Napoleon III, but Vivendi were originally known as Compagnie Generale des Eaux, created by imperial decree by Napoleon in 1853, supplying water to Lyon, Paris, Nantes, Venice, and Constantinople. The company remained fascinated with water for the next 100 years, and by the 1970’s they decided to expand into other less wet sectors.

Since the divestment of Universal Music Group (the worlds leading music company) in September 2021, the price has failed to actually do anything really interest, but there are early signs something may be going on with Vivendi.

To be utterly clear, there is currently no logic which presents any scenario where recovery to the levels before Universal was spun , but things are starting to give slight reason for hope. And, of course, we’ve had a few emails asking for our opinion on their potentials.

Above €10.3 looks capable of entering a recovery cycle toward an initial €12.25, along with a visual suggestion of hesitation given this matches the highs achieved post Universal Music. But we shall regard closure above the €12 mark as quite a big deal, entering a longer-term cycle to an impressive €16.6. If wanting to play safe and sane, above the Blue downtrend since 2022 illustrates €10.5 as a potential trigger level to get things moving properly.

If the market plans to take a crazy route, below €9.5 could possibly trigger problems, causing reversal down to an initial €9 with secondary, if broken, at a hopeful bottom before €8.5.

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Source: Trends and Targets. Past performance is not a guide to future performance.

Alistair Strang has led high-profile and "top secret" software projects since the late 1970s and won the original John Logie Baird Award for inventors and innovators. After the financial crash, he wanted to know "how it worked" with a view to mimicking existing trading formulas and predicting what was coming next. His results speak for themselves as he continually refines the methodology.

Alistair Strang is a freelance contributor and not a direct employee of Interactive Investor. All correspondence is with Alistair Strang, who for these purposes is deemed a third-party supplier. Buying, selling and investing in shares is not without risk. Market and company movement will affect your performance and you may get back less than you invest. Neither Alistair Strang or Interactive Investor will be responsible for any losses that may be incurred as a result of following a trading idea. 

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

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