SmartGroup Corp Ltd (ASX: SIQ)
SIQ had a fall Wednesday do you know of any reason for this ? What is you view on this stock what would be a buy price if any? Thanks and regards Glenn .
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Answer
Hi Glenn,
We discussed SIQ last month here, before it plunged ~12% at its worst this week. Tuesday fall could only really be down to two factors.
- The falling Oil price which would presumably lead to lower EV demand, which has been a core part of their leasing volumes.
- A major institutional investor ceasing to be a substantial shareholder.
Trading volumes surged almost six times the 20-day average, suggesting unusually heavy selling activity. Importantly there was no corresponding earnings downgrade or confirmed deterioration in Smartgroup’s underlying business.
There’s no change to our view, we like SIQ closer to $10, or another 10% lower.
