What are MM’s thoughts on CGC?
Hi James Costa reported Tues and the market liked it -CGC +8.67% This was all reversed the next day. How did the sentiment change soo quickly. What is the current view on Costa? regards Deb
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Answer
Hi Deb,
I think the move by Costa group (CGC) illustrates how skittish equities have become in 2022. The change in sentiment generally comes from management articulating / discussing the result on investor calls – providing more context to the announced numbers. Being on calls, meeting with management we think is important and it’s what we spend the bulk of our time doing during reporting (I was not on the CGC call though). Taking into account its shocking performance over the last year MM wouldn’t be tempted to buy this fruit & vegetable business unless it plumbed fresh 12-month lows i.e. around the $2.50 area.
