yesterday the stock was trading more than 50% below its yearly high which was set around last june , the stock was in a downtrend for months , plenty of companies are doing very well right now yet their SP has been clobbered
disney produced great results last night yet is down 5% today having closed at a near fifty two week low yesterday , its rare for a stock to soar off earnings when the stock was at a fifty two week low , as i said earlier , huge short squeeze with kappa , stocks often need to test lows again before they find a bottom so i think the stock will still be available under twenty euro in the coming few weeks , its fifty day is still under its two hundred , techincally , it might not be ready to sail up
as far as i can see there is a total disconnect between the sp of this company (and many more) and the financials produced on result days. Is it because trading computers cant read the reports or because the traders have lost the ability to do the sums and depend on fancy algorithms.
Cyclical or not you really need to read the report to see the strength of SKG. they are producing almost 400million of free cash and growing that consistently. Every metric is positive and management exceptionally strong. this has continued into H116 and the company are already set up for a great year again regardless of a recession. Just one example, Kraftliner is a big part of this business and is traded world wide like a commodity. In europe 70% of SKG brown kraftliner production goes directly to their own higher value box production and the other 30% is pre swapped for raw materials they need to buy in. So one of their potentially weakest areas is 100% sold regardless of a poor 2016.
Unless you were to be subject to a margin call you might not have been able to meet, i cannot get my head around selling this share into the results. Since they deleveraged, they have not seriously put a foot wrong.
smurfit is in a cyclical industry and that industry is in a serious bear market globally , i assumed it would join the rout , i expected it to go to 15 euro as that was the low around july of 2014 , smurfit was well down long before this current market rout
thought it was more than shorting , this massive jump today may be no more than a short squeeze , i might well get another chance to buy where i sold
i'm disappointed for you Bob, you had a bargain and gave it away. The down trend never had anything to do with the cash making machine that this company is. Almost a 4% dividend as well. Still value though....
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