Greggs and Compass

[paulm555]

Do these two shares look good value for a short term up bet?

[Caseynotes]

Hi ,  That Greggs chart looks horrifying and I don't buy the 'Beast from the East' cold snap affecting sales to cause that gap and drop.

You might be tempted to go for a gap fill buy but this just doesn't look right.

 

http://www.bbc.co.uk/news/business-44051743

 

 

 

 

 

 

 

 

[Caseynotes]

  Compass Group plc is interesting, had a tough 2nd half 2017. Latest report caused dip and though margins down profits are up and also lost long standing CEO and company architect in new years sea plane accident so still re-organising. 

 

https://uk.reuters.com/article/uk-compass-group-results/compass-groups-first-half-disappoints-shares-tumble-idUKKBN1IA0P0

 

 

 

 

 

 

 

 

[Guest PandaFace]

Saw a headline which made me laugh “Greggs shares do a bellyflop I’m cautious outlook”.

 

The primary reason for the fall seems to be more the OUTLOOK rather than the previous quarter. Sales were in fact up in thesefirst 18 months by almost 5% as were like for like. Granted not as much as the previous year but still not bad... doesn’t suggest a 15 pull back atthis stage if you ask me. 41 store opens vs 12 close as well seems fine.

 

The question for me lies in was this overvalued previously? If not, then this pull back is an opportunity to bid bid bid.

 

The primary issue I have is “will Greggs still grow when the whole of the world seems to be on a health binge at the moment?” I’m not so sure and I feel there is a better investment opportunity in other avenues.

[Guest PandaFace]

I meant to add... as a short term trade I don’t see why not. 15% seems a large pull back given the fundamentals.

[Caseynotes]

That was my feeling as well, the drop is too big for the given explanation, my suspicion is there is something as yet to be revealed which is why I would be cautious. 

[JamesIG]

Just to let you know we wrote an article on Greggs. Greggs share price takes battering: has it still got the recipe for success?

 

 

[Caseynotes]

Just an update on these two. Compass has just broken up out of it's triangle pattern while Greggs remains sunk.