United Malt Group (UMG) is the 4th-largest global malt producer, with operations in four countries and a diverse customer mix. The primary use for malt is for brewing beer, which accounts for approximately 90% of demand.
“Current price levels appear to be a buying opportunity because the stock looks cheap considering its earnings growth potential, Michael said.
“Turning to the chart, UMG had been in a downtrend all year, but it is now breaking above it.
“Firstly, in October it retested the August low and bounced off it nicely to form a double bottom.
“It then congested under the downtrend line in preparation of an upside break. “Pushing beyond the downtrend line is now making this a buying opportunity,” Michael said.
United Malt Group (UMG)
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