PFD - Lateral Breakout?

Premier Foods (19th January 2015)

The chart of Premier Foods has been on my radar screen since the Christmas period, as the price gently slid (laterally) out through the gently sloping downtrend line that has been in place since last September. This line itself marked a more shallow downtrend than the longer running line, in place since April 2014 (see graph below)...

I'm interested in the 50 day moving avergae (blue line), which has just started to turn up and the fact that the downtrend on the OBV has also been broken (to the upside). Supporting this are buy signals on both ADX indicators (annotated on the graph).

Key Metrics

The key points, from the Key metrics (above) are:

• Low PSR (0.18)
• Low PE(pr) of 4.7
• Low PCF & P/FCF (1.559 & 1.646 [respectively])

However, don't forget to check out the share dilution as a result of the placing and rights issue (completed in April 2014).

RNS (Management Statement)

The following RNS states that Q4 Management Statement will be released on Friday 23rd January 2015. I also note that there is a link to a webinar... I might just listen in!

16 January 2015

Notification of Management Statement

Premier Foods' Quarter 4 Management Statement for the quarter to 31 December 2014 and summary results for the 12 months to 31 December 2014 will be released at 7.00am on Friday, 23 January 2015.  This will be followed by a webinar for investors and analysts at 9:00am, hosted by Gavin Darby, CEO and Alastair Murray, CFO. The details are outlined below.

Webinar registration link:

www.premierfoods.co.uk/investor-relations/

Summary

Notwithstanding the mixed signals, it may be worth keeping a close watch on PFD in the next few months. What do you think?

Mick (19th January 2015)