Bidcorp: winter is coming
With Europe’s energy crunch putting both consumers and the hospitality industry under extreme pressure, it’s difficult not to be bearish about the group’s short-term prospects
It’s time to revisit Bidcorp, which IM last wrote about in March. The spot price at the time was R295 and the share price ran all the way up to our target of R340, a significant resistance level. That was the right time to take profit, as it has drifted lower to R316 at the time of writing.
Since being unbundled from Bidvest, this stock has been great for trading and horrible as an investment, with a share price compound annual growth rate of less than 1.5%. For traders at least, there is much fun to be had between R300 and R340 a share, a clear traded range that has been tested many times. You can play the long and short sides of the trade, generating solid returns provided the range holds...
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