Not liking the selloff in this stock the last several days, very weak. Today is surprising, market up around 1%, Consumer Staples up 0.24%, BGS down 0.24%. With BGS currently trading around 21.20, I see that there is some "possible" technical supports converging now or very soon: 200 ma underneath (20.74, 20.88), we are currently tagging a downward support trendline (which goes back to Jan 10), we are at the support offered by the highs of June and July of last year (21.25 to 21.31), and we have a possible support level at the Nov 25 low (20.57, which would be a double bottom if we bounce off it.
Buyers SHOULD be coming in soon, unless the overall market fails to continue to bounce here.
I think the early heavy volume might have been shorts covering and with no volume after that just fizzled. Next short report will be interesting to see if it is lower. BGS Still not a bad place to be as I look at this as a defensive move with nice dividend. Broad product base and well managed business with multiple marketing outlets, Grocery Store, Club distribution, Dollar Stores and more. Might sell some options near the money if pps strengthens to pick up cash flow inbetween dividends.
Short lived Pop upon opening --so only time will tell. What I took away from CC is that they are very informed of the pulse of the business and react accordingly and that is very comforting. Based on EBITDA forecast I think that supports BGS meeting current estimate of annual EPS.
Congrats on your entry! Nice gap up after earnings, trying to hold on to a green candle though. This stock is sooooooo volatile for a consumer staples stock. I hope that will change eventually. I'm holding.
Earnings will be announced soon and unless there are surprizes, I see this rebounding. Perhaps just pre-earnings jitters. I like the business model, their products and the management is straight forward and experienced in the business. I would encourage you to listen to the webcast of the recent presentation in March if you have not already.
Yeah I did listen to it (most of it), that's another reason I'm so surprised, I came away feeling positive about the stock. You're probably right about the pre-earnings jitters. This is, after all, a highly volatile stock. Float short is pretty high for a consumer staples stock at 5.92% (General Mills is 1.01%, Kraft is 0.5%). BGS may have a higher P/E of 20.61 (GIS 16.46, KFT 18.6), but PEG is better at 1.96 (GIS 2.09, KFT 2.07).
I like the fact that they are working with the dollar stores to have a heavy presence there. I suppose this stock is one that you don't want to look at too much, just hold it, and maybe add more on the semi-annual dips, especially if you were unfortunate enough to buy near a top.