RE: Please enlighten me...22 Mar 2024 19:01
Falcon-Flyer - I have read your posts and appreciate your information you are providing. A lot of people on this board will have bought into JD after the Trading update in January after the price dropped. I too did the same. As a lot of people will be aware, the price fell after the CEO was perhaps a bit bullish on the annual trading profit. If each person does their research, there is a lot of information available. I am aware that JD sells ADIDAS and NIKE brands and as both recently posted results that confirm short term headwinds against them due to the global economic downturn and this in turn has caused the JD price to fall.
I have purchased JD shares after selling holdings in Dividend paying stocks. It is my intention to sell my holdings when the share price hopefully recovers to what it was prior to the Trading Update and will go back to purchasing Dividend stocks to pay me passive income.
I am also aware that there is a disclosed short position by GLG Partners for 0.53% of the stock. As there is 5,183,135,745 shares in issue, 0.53% equates to over 27.47 million shares that require to be bought back. I don't have access to any more information but today would have been an ideal day for aa selling algorithm to drip feed sells to drive the share price down so that the short position could be closed. I have had a look at after hour trades on this site and there are large numbers so it may be that there is a lot of arranged purchasing going on to close the short position.
My average is sitting at 111.49. I am now retired and have a SIPP and and ISA that I have investments within and I receive dividend payments for the shares I own. I know that the dividend that JD pays is only 0.73%. I bought into this company as its revenue has increased year on year, making 10.125 billion pound last financial year, 440.9 million before tax.
This financial year, the company have previously stated in the January trading update that they are estimating to make between £915 and £935 million before outgoings.
We all have financial goals in investing. My goal with this share is to hold until the price recovers. By selling my dividend paying shares to buy into JD, I have waived a guaranteed dividend pay out but the growth potential of this share will make up for it.
If you can, buy more shares when the price slumps on a day like today. I topped up with another bundle at 108.88, just missing the low point.
FF, keep posting the information as I don't have access to Level 2 information and your posts are welcome, when you are telling us about the large buys and sells. I have been buying and selling shares since 2010. Now retired but the fundamentals about JD tend to show that the price should recover over time. Once the interest rates reduce over time, and more disposable income becomes available, I am sure athleisure clothing will be purchased through JD for the younger person who requires labels etc.