How much will Wetherspoons gain from lockdown ending?
When the era of Zoom drinks finally expires, the budget pub chain could see a dizzy recovery.
26th January 2021 08:30
When the era of Zoom drinks finally expires, the budget pub chain could see a dizzy recovery.
Wetherspoons
Once a year in Scotland there's a very special evening when people gather in pubs, clubs and hotels to toast the memory of the poet Robert Burns. This year, everything inevitably changed.
Instead, our invitations were to attend 'virtual Burns Nights', essentially a bunch of folk getting drunk and eating haggis while sitting at their computers,
The share price of Wetherspoon (LSE:JDW) is showing early signs of enthusiasm for a future when lockdown ends and we can once again gather on dark winter nights to infect each other with cold & flu in pubs.
When this happens it is easy to speculate that Wetherspoon will experience a dizzy pace of recovery nationally. We've decided to place a recovery trigger at 1,280p, as share price movement above such a level should prove capable of swift acceleration to an initial 1,533p.
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If exceeded, our longer-term secondary is truly surprising, calculating at 1,901p and a new all-time high. Despite the price looking fairly calm, at 1,180p presently, the share really does not require much work to get things moving.
If things intend go horribly wrong, the share price needs to dip below red on the chart, presently 900p, to justify concern. Such a calamity allows weakness next to an initial 734p with secondary, if broken, at 405p.
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.
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