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Most counters had been rising quick and sharp since the dip from last
week but VS and SKPRES had yet to move following the broad market this
time around.
For obvious reasons, VS and SKPRES are makers of plastic products for
the famous brand Dyson and GBP is the biggest threat to them so far.
Much like stock prices spiking for exporting counters when you see the
USD strengthened three years ago, the weakening GBP had caused these two
counters to follow suit.
GBP dropped significantly due to Brexit and we felt that it would
remain weak for the time being. Nevertheless, these two counters has
value with the availability of capacity to deal with continuous order
increases.
The only doubtful factor would be a range of new products by Dyson
that might not include SK Pres and VS in their OEM supplier list. All
things remain constant, we believe that these two counters are cheaply
priced for the time being neglecting the fact that external risk could
still point downwards.
We think that it is worth to collect some if you had made profits from
this rise as it is hard to find counters which are high in value after
this rally.
Looking at institutional transactions, they had began collecting these
two counters in anticipation for a better GBP strengthening in the
coming months or so.
Net-off, both counters see addition by KWAP but VS seems to be more
aggressively bought by them so far. You be the judge on which to buy. We
like both!
Chart wise, both trades similar as well and we are on the lower side of things than what it was starting this year alone.
SKPRES down 50% YTD
VS down 29.5% YTD
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