MM has stated repeatedly that 2022 will be a year that would often hammer the crowded trade and CCX is proving a perfect example after already halving from its late 2021 high – virtually every mid-cap manager held had this one in their portfolios. However, the stock was hammered over 30% following a disappointing half-year result which has since been followed up by the news that the stocks lost its position in the ASX200 – when it rains it pours as people in Brisbane & Sydney can testify to today.
The company’s 49% increase in revenue flowed down to a disappointing 6% drop in net profit hence a fall in the stock was not unexpected but over 30% illustrates the risks of riding the same horse as too many investors.