Share to sell: GWA Group (GWA)

GwaGWA’s result in February missed consensus estimates and guidance was lowered. Cost increases, the A$ and price declines all offset attempted cost savings, so GWA needs to work harder.

Bathrooms & Kitchens saw margin expansion but with 70% of products imported and GWA’s 32% premium pricing to peer product ranges, there are concerns over the company’s structural issues.

Those concerns are reflected in the company’s share price, which has fallen from a high around $3.25 in October, to presently be trading around $2.60.

We have a solid bearish structure in place, with the shorter-term EMAs crossed lower and the price action below the longer-term EMA filter, which remains negative.

More recently, the price action has been back to retest and confirm as resistance the $2.70-75 region, an area which previously acted as support on multiple occasions.