Wow, this one really took a massive dump. On the carpet. In front of the vicar.
I hold this share. It was my biggest faller in my portfolio, and it just got worse. I’m nursing a 50% loss on this. Ouch. I bought it back in May 2019 when it had a dividend yield over 4%, and the shares had good momentum.
What’s very interesting is, looking at the chart, CARD failed to participate in the Santa rally. It seems that Mr. Market was anticipating weakness.
Paul Scott mentions CARD in his latest report over on Stockopedia. He is long the stock, so I can at least console myself with the fact that I’m in good company. He classes the RNS as a mild profit warning, and pointedly states that the company is obscuring the figures for xmas trading. He sees value at 100p, having bought in at 140p.
At 9:10am, shares were down 21%. A director made a purchase of £11k. The shares slid further. As Paul states:
the CEO has just bought a paltry 10,000 shares today. If that was designed to show confidence, it’s back-fired. If the CEO is only prepared to risk £11k of fresh money on buying shares, then that worries me, more than reassures me.
I wholeheartedly agree with that! I take the purchases as a bearish point.
My plan is to hold onto the shares for now, as the drop has been highly precipitous. Hopefully I’ll get some recovery in the share price with a firm view to sell in May.
Not one of my better picks. Anyway, you can read Paul’s detailed analysis in the link provided.
Stay safe out there.