Market Confusion This morning’s reaction illustrates the distortion that is always on offer with the stock market and the difference in views on a companies worth and how results are interpreted. The knee jerk reaction to only a 2% growth in the UK was the intial reaction with the stock falling over 7%. Right now as the market analyses the growth in the US and the ROW, and maybe realising the scope, marks the stock up 10.47%. Analysts? – You are probably best reading the annual reports and forming your own view. Games
Perhaps becoming more investable? At £30 perhaps yes – at £17-18 – with a market just starting in the US and an alliance with the largest Tequila brand, maybe it still is, but maybe it has a strong growth future, despite the tailing off of the growth in the UK, its main market. Time will tell – the Trading update was more positive about the US and ROW than anticipated back in July, hence today’s hike. Games
It might fall further Or it might not Phil – Fevertre e is off to the races this morning after the trading update investorschronicle.co.uk – 13 Nov 19 Fevertree may fall further Fevertree shares have fallen a long way from last year's peak, but worse may still be to come. Phil also looks at whether BT really needs Champions League football rights and the bull case for the FTSE 100 Here is the trading update [link]
Perhaps becoming more investable? It was massively over hyped an massively overvalued. When I queried the value (at about £30) I was told it was justified because it might get taken over by Coke. A share price which levitates above intrinsic value on very vague takeover hopes is a clear sell.
Perhaps becoming more investable? FEVR – has been falling for some time now. It’s P/E has halved over the recent times and it has experienced a lot of negative selling pressure. However, it appears that a forward P/E of 27 ish is reasonable considering the early growth position of FEVR in the United States and in particular it has struck the relationship in the Tequila Market and promoting gin in the USA. Kevin Havelock a NED at FEVR and has a long history in the drinks history shelled out £289K on the stock at a price £21.77 and guess I have a relative bargain at an entry point of £18.56. Still relativity counts for nowt if it keep falling. I see also that Smithson added FEVR to it’s list recently also at around £21/ Time will tell. Games
10 rise? Did this really go up 10% yesterday? That’s what seems to be showing.
8%? Drop I know what you mean but I can’t quite hit the sell button yet.
8%? Drop I can sympathise with those who think Fevertree looks pricey, especially as I’ve just seen the price hit £35. I couldn’t look someone in the eye and recommend buying at that price, but what do I know? (nothing, evidently…)
8%? Drop Lucien Miers the fat boy famous bear in the tom winnifrith camp wrote a month ago he may short FEVR. He confessed to the company being superb, with a great product and excellent management. And that shorters over the previous 18 months got their fingers burnt. But he thinks FEVR is pricey and a fair sp is £20. The sp was £29 then. There you have it. I continue to hold a half decent amount.
8%? Drop I agree, I like the product and I’m currently drinking a fair amount of their Ginger Ale. I was just reading about people’s concerns previously, like the poster in January who said he’s opened a ‘nice short’ on Fevertree, the price then was around £21 & £22. He doesn’t appear to have posted since…
8%? Drop Could it be down to a quality popular product. My favourite is the aromatic. I see fevertree everywhere at the moment so their sales must be good.
8%? Drop FEVR continues to beat market expectations every time it announces a trading update. Thus, this growth story continues to deliver. This share is widely held by institutions; they’re not sellers although the shorters are circling the stock with a target low of £20. I’ve held this share for a long time in the past 2-3 years, bought at £4.50 and sold at £22, traded it few times during that period, then re entered. I have a decent size holding now. The purpose of this post is to mention an exit strategy if things turn pear-shaped. I have a trailing stop loss process in place. I’ve no idea what’s happening in the background re the fundamentals of the company. But I do follow the charts (see below) and will exit if the charts say so, otherwise I stick around. All good fun. Dr M This is the share price chart. The chart shows the sp, 50 and 200 ma, the RSI and volume. image.png930x610 38.8 KB [link]
8%? Drop So, apart from the odd drop every so often, the price continues to rise, now around £33. Is there no stopping this rise? Is the increase due to anticipation of a takeover? Are there other reasons? Are we past nosebleed territory and into oxygen deprivation altitude?
Re: 8%? Drop Good call northern pike hunter
Re: 8%? Drop Good call