I've loved this stock since I first stumbled onto it about a year ago. I also keep wondering why it hovers around the mid 30 range and occasssionally breaks the 40 barrier. I bought this stock as a long term play but I must admit it baffles me at these levels and volumes. My gut feel is that 2nd quarter earnings should meet or exceed expectations and once again it will break the 40 barrier, the tough part is sustaining the 40 range. If a US market correction should take place anytime soon a price of below 30 would signal a large buy from me (I already own 1000 shares). So my advice is hang tough! This is a great stock and as we all have seen this stock is somewhat volatile at times. Great Stock to have in your long term play.
Maybe the drop in PB's price is directly correlated to the value of Latin American currencies? I understand in the last few months several Latin American currencies have fallen in value versus the U.S. dollar by 10% to 20%. PB is off about 15% since it hit $40 a few months ago. Any thoughts?
Depending on the composition of Panamco's debt in US dollars vs. local currencies, and keeping in mind that as the dollar value of operating profits falls with steeper exchange rates, so do operating costs...
I don't have nearly enough information to figure it out, but I am pretty sure that a 15% drop in local currency value vs. the US dollar should not become a 15% drop in its stock price. I think we need a real pro's contribution in order to be a little clearer on this issue.