By Jason Fittler
Brambles Limited is a global provider of support services which operates through two key businesses; CHEP and Recall.
BXB has operations in approximately 45 countries across six continents with a primary listing on the ASX and a secondary listing on the London Stock Exchange.
CHEP: A provider of pallet and container pooling services, delivering pallet and container chain logistics and efficiencies for customers primarily in the fast moving consumer goods; produce, meat, home improvement, beverage, raw materials and automotive industries.
RECALL: Recall is an information management solutions provider. The primary focus is on transaction-intensive market segments such as banking and finance, insurance, health care, retailing and government.
BXB has been trading in a down trend since September 2009, which is still technically intact.
The first potential downside price objective is around $5.55 where we will need to reassess.
Overall, the medium-term down trend from the April high is still in progress and at present there are no signs suggesting a reversal.
BXB recently lost a contract with ConAgra foods, this loss is expect to hit the 2011 financial year. There is also a concern over the losses from foreign exchange movements, which are playing on the company at present.
I see this company as being negative for the medium term as such there are better places to invest your money. I would look to exit the stock on any short term rallies.
For more information on Brambles Ltd (BXB) please call us on 07 4771 4577.