Hot Stock of the Week
Hot Stock of the Week - a weekly column from Galvan Research and Trading. Our objective is to provide the UKs best CFD advisory service. In 2005, Galvan was awarded Best Equity Derivatives Advisor at the prestigious Shares Awards. We provide our clients with concise and decisive research developed specifically for CFD trading.
|BUY||Target: 530p||Stop Loss: 465p|
WPP is a global advertising and communications giant. The group has recently been reinforcing their global status by building stakes in companies in Europe, America, Argentina, Kenya and China. They currently employ over 60,000 people working in over 100 countries and have a comprehensive client list including AT&T, Colgate-Palmolive, American Express, GlaxoSmithKline and Nestlť. Wpp not only specializes in advertising but also operate in various areas via subsidiaries. This includes media management, Information & Consultancy, public relations and crisis management. This means they can provide a complete communications strategy for companies in the financial, business, health and environment sectors. This strategy has helped towards a positive set of figures being posted on 22nd August showing pretax profits up 14 percent and an increase in dividend, which in turn should fuel the move up.
The stock has started to form a neat uptrend despite challenging market conditions. This can be contributed in part to its diversified business model. With the price moving back up off the lower Bollinger Band it is looking a good time to enter the position. We would be suggesting a trailing stoploss initially being set below the recent lows 465p. As the price moves up we would continue to trail the stoploss behind locking in profits.