greenieS
Verified member
Michelin's field of activity
The SCA Group Compagnie Générale des Établissements Michelin, known as "Michelin", is a French company specializing in the manufacture of tires, founded in the late nineteenth century.
The Michelin Group is organized into 4 production lines.
tire
As a world leader in tire production, Michelin offers tires for all types of vehicles: cars, motorcycles, scooters, trucks, agricultural and construction equipment.
Services and solutions
Michelin offers services and solutions for:
Management of fleets of light or heavy commercial vehicles, semi-trailers or vans;
Maintenance of truck tires;
Improving road safety for light commercial vehicles;
Optimizing agricultural, mining or aeronautical yields;
Mobility experiences
This section includes:
Gastronomy: highlighting the Michelin guide and the much desired "Michelin stars" awarded by this producer;
Travel maps and applications;
Car and bicycle accessories, footwear, sports and leisure equipment;
High-tech materials
This section includes:
3D printing of metals;
Tire recycling;
Use of hydrogen based technology;
Rubber products;
Provision of biomaterials based on elastomers and monomers of biological origin;
However, in the group's reports, Michelin divides its business into three segments.
SR1: Automobiles and associated distribution. Including Experiences activities;
SR2: Trucks and associated distribution. Including service activities and solutions;
SR3: Specialized activities and associated distribution. Mining, off-road tires, tires for two-wheelers and aircraft, High-Tech materials, Michelin Lifestyle Ltd, as well as Fenner, Camso and related activities in the field of Hight-Tech materials.
Michelin Actions - Technical Analysis
In the following, we will analyze the evolution of Michelin stocks on the stock market, conducting a technical analysis and using different time intervals to analyze their short and long term performance, as well as to try to anticipate what the reference levels will be in order to trade contracts for difference (CFD) on Michelin shares or to invest in them for profit.
The graph above shows the historical evolution of the price of Michelin shares, starting with 2008.
This chart highlights how, from the end of 2010 to the middle of 2018, Michelin shares traded in a bearish channel with an amplitude of about $ 27.
The downward pressure caused the channel to break through on June 24, 2018, when the support of this channel was located at approximately 106 euros per Michelin share, delimited on the graph by the intersection between the yellow horizontal band and the red vertical band.
This breakthrough led to a significant drop in the price, reaching a support level of 79 euros per Michelin share. This level can be calculated by subtracting the amplitude of the uplink channel from the moment the channel support level is pierced.
This point marked the beginning of a new cycle, in which Michelin shares evolved sideways again in an upward channel, with an amplitude close to 27 euros.
However, at the end of March 2020, the coronavirus pandemic turned the global stock markets red, affecting the listing of Michelin shares, which lost support for this new uplink channel, at 96 euros per Michelin share, as can be seen. notice in the chart above.
➢ Can you imagine where the traders placed their purchase orders to re-enter the market?
Indeed, they were looking for support, once again reducing the amplitude of this channel, which was pierced to 96 euros to re-enter around 69 euros per share.
Since then, the price of Michelin shares has shown a positive trend and, in November 2020, it has re-entered an upward channel. In 2021, the quotation of Michelin shares registered a spectacular evolution, and, in just 6 months, it managed to break through the resistance of this channel. This happened on June 20, when the resistance was at the level of 134.5 euros.
If the price stays above this resistance in the coming weeks, the next key level to watch is 161.5 euros, 27 euros above the breakout level where, according to this model, there could be an increase in pressure. for sale.
The first conclusion from the analysis of these figures is that Michelin is the only company among the top 4 tire manufacturers in the world to make a profit in 2020. Notable are the significant losses recorded by Goodyear, representing about 25% of the company's market value.
Also noteworthy are the significant net losses incurred by Continental, which, despite having higher revenues than its competitors, had the worst performance in terms of earnings per share for shareholders.
In conclusion, looking at this chart, it appears that although Michelin's 2020 data on key indicators was lower than in 2019, the company was able to adapt much better than its competitors to the scenario. atypical that the whole sector will face in 2020.
The SCA Group Compagnie Générale des Établissements Michelin, known as "Michelin", is a French company specializing in the manufacture of tires, founded in the late nineteenth century.
The Michelin Group is organized into 4 production lines.
tire
As a world leader in tire production, Michelin offers tires for all types of vehicles: cars, motorcycles, scooters, trucks, agricultural and construction equipment.
Services and solutions
Michelin offers services and solutions for:
Management of fleets of light or heavy commercial vehicles, semi-trailers or vans;
Maintenance of truck tires;
Improving road safety for light commercial vehicles;
Optimizing agricultural, mining or aeronautical yields;
Mobility experiences
This section includes:
Gastronomy: highlighting the Michelin guide and the much desired "Michelin stars" awarded by this producer;
Travel maps and applications;
Car and bicycle accessories, footwear, sports and leisure equipment;
High-tech materials
This section includes:
3D printing of metals;
Tire recycling;
Use of hydrogen based technology;
Rubber products;
Provision of biomaterials based on elastomers and monomers of biological origin;
However, in the group's reports, Michelin divides its business into three segments.
SR1: Automobiles and associated distribution. Including Experiences activities;
SR2: Trucks and associated distribution. Including service activities and solutions;
SR3: Specialized activities and associated distribution. Mining, off-road tires, tires for two-wheelers and aircraft, High-Tech materials, Michelin Lifestyle Ltd, as well as Fenner, Camso and related activities in the field of Hight-Tech materials.
Michelin Actions - Technical Analysis
In the following, we will analyze the evolution of Michelin stocks on the stock market, conducting a technical analysis and using different time intervals to analyze their short and long term performance, as well as to try to anticipate what the reference levels will be in order to trade contracts for difference (CFD) on Michelin shares or to invest in them for profit.
The graph above shows the historical evolution of the price of Michelin shares, starting with 2008.
This chart highlights how, from the end of 2010 to the middle of 2018, Michelin shares traded in a bearish channel with an amplitude of about $ 27.
The downward pressure caused the channel to break through on June 24, 2018, when the support of this channel was located at approximately 106 euros per Michelin share, delimited on the graph by the intersection between the yellow horizontal band and the red vertical band.
This breakthrough led to a significant drop in the price, reaching a support level of 79 euros per Michelin share. This level can be calculated by subtracting the amplitude of the uplink channel from the moment the channel support level is pierced.
This point marked the beginning of a new cycle, in which Michelin shares evolved sideways again in an upward channel, with an amplitude close to 27 euros.
However, at the end of March 2020, the coronavirus pandemic turned the global stock markets red, affecting the listing of Michelin shares, which lost support for this new uplink channel, at 96 euros per Michelin share, as can be seen. notice in the chart above.
➢ Can you imagine where the traders placed their purchase orders to re-enter the market?
Indeed, they were looking for support, once again reducing the amplitude of this channel, which was pierced to 96 euros to re-enter around 69 euros per share.
Since then, the price of Michelin shares has shown a positive trend and, in November 2020, it has re-entered an upward channel. In 2021, the quotation of Michelin shares registered a spectacular evolution, and, in just 6 months, it managed to break through the resistance of this channel. This happened on June 20, when the resistance was at the level of 134.5 euros.
If the price stays above this resistance in the coming weeks, the next key level to watch is 161.5 euros, 27 euros above the breakout level where, according to this model, there could be an increase in pressure. for sale.
The first conclusion from the analysis of these figures is that Michelin is the only company among the top 4 tire manufacturers in the world to make a profit in 2020. Notable are the significant losses recorded by Goodyear, representing about 25% of the company's market value.
Also noteworthy are the significant net losses incurred by Continental, which, despite having higher revenues than its competitors, had the worst performance in terms of earnings per share for shareholders.
In conclusion, looking at this chart, it appears that although Michelin's 2020 data on key indicators was lower than in 2019, the company was able to adapt much better than its competitors to the scenario. atypical that the whole sector will face in 2020.
