Q: Greetings,
I am wondering if Gibsons is worth a punt at less than $20 ish to be treated as a trading stock whilst being paid to wait for an uplift?
1. Highly leveraged - Could this be a big problem going forward? Are the dividends safe?
2. From what I can tell, 5 separate Insiders bought meaningful amounts of stock on Feb 20th - They must know something?
3. Sudden steep decline - Maybe an over reaction?
4. Trading range - Since 2019 the stock seems to be trading in the range $20 - $26 - Can we hope on a reversion to the mean?
5. Are it's problems self inflicted or general market sentiment ?
Many thanks!
I am wondering if Gibsons is worth a punt at less than $20 ish to be treated as a trading stock whilst being paid to wait for an uplift?
1. Highly leveraged - Could this be a big problem going forward? Are the dividends safe?
2. From what I can tell, 5 separate Insiders bought meaningful amounts of stock on Feb 20th - They must know something?
3. Sudden steep decline - Maybe an over reaction?
4. Trading range - Since 2019 the stock seems to be trading in the range $20 - $26 - Can we hope on a reversion to the mean?
5. Are it's problems self inflicted or general market sentiment ?
Many thanks!
5i Research Answer:
1) 12 month payout ratio is 57%, which is OK, but this is where the high leverage comes in. With...