[HOLD/BUY] Monotype

13 февр. 2019 г.

# Fundamental Analysis

## Long term debt
- On September 2016, Monotype got 110M on Long Term Debt. Goal: 2 acquisitions.
- On September 2018, the Debt decreased by 27% (80M).

## Buybacks
- During 2016, only 6M were invested in buyback.
- During 2017, only 6M were invested in buyback.
- During 2018, in the first 3Q, Monotype invested 7M on buyback. And we still pending the Q4 reports (we are going to see them on Feb 15)
^^^ This last item may be considered as a positive Balance Sheet
- We are expecting a 5M long term debt payment during 2018 Q4, resulting in a 75M long term debt.

## Balance Sheet
- On September 2018, Monotype has 70M in CASH, covering more than 90% of the Long Term Debt.

We expect, during Q4 report (publish on Feb 15, 2019), seeing a Long Term Debt 100% covered by CASH, and a Long Term Debt less than 20% of the Equity, resulting in some indicator changes (positive).


# Technical Analysis.
- In the short term, we can see some accumulations limits on 16, 16.25, 16.75. They may be related to some good expectations about next Q4 report.
- Value crossed a huge resistance line, after dealing with it during a whole week.
- On another hand, Monotype seems to be crossing the middle of the canal. May be resulting in a decrease of the value.
- Price going up with no volume. It can be considered as good expectations for the Q4 announcement.

13 февр. 2019 г.

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Idea updated on