Is this property developer set for a rosy future?

by Alistair Strang from Trends and Targets |

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Lockdown easing and increased footfall stand Hammerson in good stead.

Property developer Hammerson (LSE:HMSO) looks worth paying attention to. It is, doubtless, a company about to experience happier days as lockdown eases and increased footfall begins.

It was almost amusing to note that one of their flagship properties, the Silverburn shopping, dining, & leisure destination in Glasgow, was once known as the Pollok Shopping Centre.

This destination certainly invoked childhood memories of working in our family business just along the road. We were robbed at knifepoint once, once by a gang and once helped a motorcyclist who'd just been peppered by kids with a shotgun.

Glasgow once had a dreadful reputation for gangs and violence, a problem easily solved by bulldozing troublesome areas and moving the inhabitants elsewhere.

Fortunately, this was one area where the developers appear to have got things right. The area around the shopping centre has now vastly improved from days of old.

We're pretty optimistic for the future of Hammerson’s share price. When we apply our normal recovery scenario, it appears that movement next above just 31.5p should attempt an initial 33.75p.

If exceeded, our secondary expectation is more useful at 42.75p. Should the market adhere to the current playbook, it's likely any recovery exceeding 33.75p shall doubtless reverse a bit, potentially to around the 29p level, before again accelerating upward, eventually finding our longer-term secondary.

As always, we've got a ‘however’ to add in. Visually, it appears crucial this share price finds an excuse to close a session above 40p at some point. This is liable to become a big deal, one made possible by our current secondary target.

Such a scenario potentially will push the price to reach for 63p in the future, breaking the downtrend since 2018 and providing a whole new level for long-term hopes.

For now, it looks like it wants to reach 42.75p, so worth watching.

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.

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