AG BARR (LSE:BAG)
The makers of Scotland’s other national drink were supposed to be left reeling when US President Trump declared war on them. The problem; Barrs’ Irn Bru stains cannot be removed from his Scottish Hotel carpets. The greater surprise is why no-one thought to ask a Scot how to remove the ginger stain?
While the easy answer is to use tartan carpets – tartan hides most stains – virtually any stain cleaner removes Irn Bru, Coke, Fanta, stains. In fact, we were left wondering whether it was all just a stunt to raise the profile of a product in a country where it really does not require its profile raised. Even the news the company were reducing the products sugar formula and instead adopting the killer poisons so beloved by virtually every other soft drink manufacturer appeared not to harm sales.
The share price appears poised, ready for some sort of movement. Last time we covered A G Barr (BAG), we speculated at 685p as providing a major point of interest. The share price appears to have achieved this target, then virtually stopped growing.
As mentioned yesterday in our comments about “important numbers”, a target of 685p was one such and now, the situation exists where we can anticipate closure above just 702p to confirm a further cycle commencing with an initial 722p making a lot of sense.
- This Scottish favourite could continue to fizz north
If bettered, we’re looking for 774p in the future. Though, if the company opt to release some spectacular news (ie; IrnBru beats grey hair – turns it ginger!), it would be easy to expect 867p to make a guest appearance.
At time of writing, the share is trading at around 687p. It needs fail below 605p to turn our calculations to a soggy stain on the carpet.
Source: interactive investor 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.
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