This week Costa group advised the markets that they were experiencing slow/sluggish sales of some of their produces. If this trend continues they expect that it will affect there earning through to the end of the year. Market response was to dump the shares which saw it drop from $7 to $5. Reasons for the sluggish sales is unknown, however there are some great fundamentals that remain strong. It would be expected that by years end that normal sales will have returned, buoyed by population growth and increasing demand from Chinese consumers.
Comment:
Price has moved above the channel, quicker than expected. A dam good trade!