Can anyone shed any light on why Swallowfield's share price is dropping so rapidly?
I am a keen & experienced investor. I love my spread sheets, and like to think that I know what I am doing. I wouldn't be offended to be described as a bit geeky. Mostly I do well, but I always strive to do better. Married male. Born 1957 England. Good career in industry for 35 years. Been successfully investing for about 30 years. I chose to retire from salaried employment at age 57 to look after my investments. I consider myself to be quite analytical / logical / mathematical, but also take into account how the world is likely to change & how people behave. I always follow my processes before taking action. more »
Looks like the single broker forecast got downgraded in July, about the same time as an inline trading update. Price has been sliding since then. No position, no idea why forecast lowered.
Thanks for your reply. Maybe there is something else going on because the share price is still falling 7 weeks later, and, as you say the update was pretty much in line. Perhaps the broker knows something that we don't?
Yes, the single broker appears to be N+1 Singer, the same as the company uses, so I assume they've been guided by management.
There seem to be quite a few stocks which peaked at the end of May and have been falling ever since. For example JD Sports Fashion (LON:JD.) and Porvair (LON:PRV) have a similar pattern to Swallowfield (LON:SWL) . I don't know what the common underlying factor is though.
Perhaps sector weakness is a factor? Creightons (LON:CRL) has had a similar decline recently.
I think Creightons (LON:CRL) just got overbought. It more than doubled from a pe of about 8 to about 20 in a matter of months, some pull back was inevitable.
