Danish jewellery charm manufacturer, Pandora, issued a trading statement this morning which many investors will not find charming.
2017 is a year that the company most likely wants to forget. The stock became somewhat of a hedge target with large short positions being actively traded on the stock. Having begun 2017 around 900 Dkk, the stock moved to a low of 550 Dkk; it’s clear the short sell effect was impacting the stock.
Fast forward to today and the trading statement does not sparkle in the slightest – the company has reported 2017 revenues below its own guidance, coming in around 22.8 billion krone – whilst the expected range had been 23-24 billion krone. In addition, the company is also replacing the CFO – this shows the seriousness of the situation facing the company going into 2018. The shocking news has affected the stock hugely today with the shares down 14% to a low of 566.4 Dkk. As mentioned previously, the next key level to watch for will be 550 Dkk – having acted as support in 2017, it will be interesting to see if this level can hold again.
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