Six months ago I said I would follow up on predictions I made about the future share price of two companies: IRV (Interserve) and TCG (Thomas Cook). I am pleased to report that both predictions had been proven correct.
IRV: I predicted that the share price would be lower. It has fallen from 238p then, to 176p now. The share price had declined sharply, and there were a number of factors that I did not like. As the saying goes: just because a share reaches lows, it does not mean it cannot move lower.
TCG: I predicted the share price would be higher. It was 88p at the time, and has since risen to 124p. If only I had backed my hunch! I liked the fact that it was in a consolidation zone, with an uptrend established. The company’s announcement seemed fairly positive, and it was trading on a cheap multiple. The only real hesitation that I had was the market’s poor reaction to its trading statement; an indicator that I take seriously. On this occasion I decided to override this factor, and predict further advances in the share price.
If only I could be correct all the time! Stay safe out there.