Any comments?27 Jul 2020 11:53
Couple of things. Lots being said on here about the company itself, effects of the bug etc- and rightly so. However this share has a high beta level (1.16 or so I think?). Basically its highly sensitive to market moves in general- as opposed to news specific to itself. My main concern in these weeks is not so much whats happening with public transport values- or even covid - or the lack of "feel good" factor in the UK- but rather I'm very concerned at the high levels of the USA markets - its just too high. A serious adjustment (say 5%??) on the dow in these coming weeks would have a big hit on any UK shares- and more so on volatile ones like SGC.
We are in extraordinary times- regarding the SP level. However- just recall that these points HAVE been passed before- in 2002-2003 there was a twelve month period of in the 20-50p range- before a strong recovery- and that was not a time when the world was in a pandemic. This week (30th) will see the release of GDP results for the USA 2nd quarter. They should be desperate figures. Has the dow already figured them in to its value ?- no one knows. My overview for SGC is optimistic caution (and disregard all brokers opinions on this stock) and I'm a buyer. Until a time when the US markets have adjusted- it may be wise to assume a strong possibility of a 20-to-50p price range for a lengthy period- and not to see that as a valuation on the company itself- or on public transport. Appreciate comments. Tim