Like any investor, I like seeing the stocks I buy for my portfolio go up. I do get a little nervous, though, when they seem to go too far too fast and that was recently true for the relatively unknown label manufacturer Multi-Color (LABL).
In the last few weeks, investors seem to have realized that expectations were getting a bit too hot for this company and the stock sold off. Matters were likely not helped any by the relatively low sales volumes reported by major consumer goods companies (and LABL customers) like Procter & Gamble (PG) and SAB Miller (SBMRY.PK). Top that off with a superficially disappointing quarter, a relatively thin float and little sell-side support and it wasn't too surprising to see the stock pull back on earnings.
Read the full article here:
Multi-Color Got Too Hot, But Still Has A Solid Future
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