What does Burson Group Ltd do?
Burson Group Ltd [ASX:BAP] is an Australian trade company focusing on the distribution of automotive parts. BAP supplies replacement parts used in the service and repair of vehicles. It also includes the sale of accessories and maintenance products to vehicle owners. BAP operates 114 stores across Australia and is headquartered in Victoria.
That’s interesting, but what is the chart telling us?
What does the chart look like?
I find it helpful to bring up a chart. Here’s the daily chart of BAP
As you can see, BAP has been in a trading halt in recent days in regard to the capital raising and acquisition of Metcash Automotive Holdings Ltd, which is reported to be a $275 million deal. The stock has recommenced trading today and is up on today’s news to a high of $3.79, with confirmation that the institutional component of its capital raising has been successfully completed.
What now for BAP shares?
The Metcash Automotive acquisition, which has 416 stores and outlets under the Autobarn, Autopro, Carparts, ABS and Midas Muffler brands, adds significant scale to the Burson Group and is complimentary to its existing trade focus.
It has had major news, we just have to watch it now and see how it reacts to this. If the share price should continue on to break over today’s news, that will tell you further what’s ahead for this company.
You just need a little charting knowledge to know how to proceed. You can get that chart reading knowledge here. You remain at a substantial investment disadvantage without it.
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