Compass Group PLC

Stocks Update

CSS Partners Service Letter

Compass Group PLC
CPG.L

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Stocks Update

BATS PLC

BATS is consolidating around 2650.0p making a low of 2627.0p for the week. MACD is negative and 12 day EMA is below 26 EMA indicating a weakness in the uptrend. 14 day RSI is trading near 50 indicating a consolidation. 14 day positive DMI is below 14 day negative DMI and 14 day ADX is at 18, indicating consolidation in the stock. The stock has also crossed below 20 day EMA indicating short term weakness in the positive trend. Looking at weakness in the uptrend the stock should be a hold with the same profit target of 2565.0p and a stop loss of 2889.0p.

Admiral PLC

Admiral is in a negative trend after the stock made a low of 1622.0p last week near the profit target of 1620.0p. Momentum oscillator MACD is negative and 12 day EMA is below 26 day EMA indicating a negative trend. 14 day RSI is below 40 indicating a negative trend in the stock. 14 day positive DMI is below 14 day negative DMI, while 14 day ADX is near 20, indicating a negative trend in the stock. The stock should be a hold with the same profit target of 1620.0p and stop loss of 1830.0p.

G4S PLC

G4S’s negative trend strengthened last week after the stock made a new low of 272.9p. MACD has turned negative and in MACD 12 day EMA is below 26 EMA indicating a weakness in the positive trend. 14 day RSI is trading below 40 indicating a negative trend. 14 day positive DMI is below 14 day negative DMI and 14 day ADX is at 18, indicating consolidation in the stock. The stock should be a hold with the same profit target of 269.0p and a stop loss of 303.8p.

Fidessa Group PLC

Fidessa’s positive trend is weakening after the stock made a new low of 1874.0p.  MACD is positive and in MACD 12 day EMA has crossed below 26 day EMA supporting a weakness in the positive trend. 14 day RSI is trading below 60 making a lower low from the level of 70, indicating the stock is overbought. The stock is above 20 day and 200 day EMA, which supports a positive trend. 14 day positive DMI is just above 14 day negative DMI and 14 day ADX is at 34 supporting a weakness in the uptrend. The stock should be a hold with the same profit target of 1830.0p and a stop loss of 2097.0p.

Aggreko Group PLC

On the daily chart, Aggreko’s positive trend has weakened as the stock made a new low of 1807.0p. Momentum oscillator MACD is positive and 12 day EMA is below 26 day EMA supporting a weakness in the positive trend. 14 day RSI has fallen below 50 from above 70 indicating the stock is overbought. Both the indicators have made lower lows with a falling stock price also supporting a weakness in the positive trend. 14 day positive DMI is below 14 day negative DMI, while 14 day ADX is near 22 indicating a weakness in the positive trend. The stock should be a hold with the same profit target of 1780.0p and a stop loss of 2033.0p.

Weir Group PLC

On the daily chart, the stock’s positive trend weakened after making a new 52-week high of 2095.0p which was not confirmed by a new high on 14 day RSI indicating the stock is overbought. Momentum oscillator MACD is positive but 12 day EMA is below 26 day EMA indicating a weakening in the positive trend. 14 day RSI is below 60 with lower highs indicating a weakness in the positive trend.14 day positive DMI is above 14 day negative DMI, while 14 day ADX is near 16, indicating a consolidation. The stock has immediate resistance at 1940.0p and support near 2095.0p. The stock should be a hold with the same profit target of 1900.0p and a stop loss of 2156.0p.

Cookson Group PLC

On the daily chart, Cookson is trading below the key support level of 628.0p making a new low of 617.0p indicating a downtrend in the stock. MACD is negative and 12 day EMA is below 26 day EMA, indicating a negative trend. 14 day RSI is below 40 with both the indicators making lower highs confirming the negative trend in the stock.14 day positive DMI is below 14 day negative DMI while 14 day ADX is rising to 21, confirming the negative trend breakout below 628.0p. The stock is also below 200 day EMA indicating a strong negative trend in the stock. The stock should be a hold with same the profit target of 600.0p and a stop loss of 678.5p.

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Important Information

This report has been issued by CSS Partners LLP (“CSS Partners”). CSS Partners is an appointed representative of Charles Street Securities Europe LLP (“CSS”) which is authorised and regulated by the Financial Services Authority in the UK. It constitutes non-independent “investment research” as contemplated by the FSA Rules and is thus considered a marketing communication. This report was prepared by Kuldeep Bhati who is employed as an analyst at CSS Partners and as such does not conform with the FSA definition of independent investment research and as such is not subject to the rule of not dealing ahead of distribution of the marketing communication and was not prepared in line with the legal requirements for independent communication.

The report is provided solely for your information and may not be reproduced or redistributed, in whole or in part to any other person without specific consent of CSS Partners.

In the preparation of this report, CSS Partners has had access to publicly available information and other sources believed to be reliable. Whilst reasonable care has been taken to ensure that the facts stated herein are accurate and that the recommendations, forecasts, opinions and expectations contained herein are fair and reasonable, neither the author, nor CSS Partners, nor CSS has verified the public information upon which this is based. None of the author, CSS Partners, CSS or any of their respective directors, officers or employees (the “Parties”) makes any representation or warranty, express or implied as to soundness of the recommendation, the accuracy or completeness of the information or opinions contained herein. Investors must make their own investment decision and not rely on this report. The Parties shall not be liable for any loss, costs, liability, expenses (together “losses”) suffered by you following your utilising any of the services we provide other than losses arising directly as a result of fraud or wilful default on our part or as a result of any liability that may not be excluded under the UK regulatory system. In no event shall we be liable for special, indirect or consequential damages of any kind, even though we may have been informed about the possibility of such loss. You shall indemnify us and our officers and employees on demand and keep all such persons indemnified against all losses which may be incurred directly or indirectly by reason of or in consequence of providing this service save to the extent that such losses arise directly as a result of our, fraud or wilful default.

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Risk Factors

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Regulatory disclosures

In accordance with the Conduct of Business Rules COBS12.4.7R (i) in the preparation of the report the analyst used price and volume charts provided by independent data suppliers and applied technical analysis tools of investment and trading evaluation in arriving at his recommendations, ii) all recommendations made by the analyst are followed up in subsequent reports until the closure of a position, iii) there is no certainty that any recommendation will be successful or that technical analysis should be used exclusively to arrive at investment decisions.

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CSS, CSS Partners and their respective officers, directors, shareholders and /or partners may have a shareholding in the companies reviewed in this report. They will not have access to this report until it is published, except those responsible for compliance issues concerning this report.

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Distribution of recommendations for the period 1st October to 31st December 2010:

	% Distribution of recommendations	No of recommendation
Buy	95.25%	20
Hold	0	0
Sell	4.75%	1

The first column displays the % distribution of recommendations made by CSS Partners in this Technical Analysis Trading programme and the second column shows the numbers of such recommendation. Neither CSS nor CSS Partners has any investment banking relationships with any of the companies covered in the Technical Analysis Trading Programme, namely the companies in the FTSE 350 index.

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