Pandora Chart

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.

Jordan Hiscott,
Chief Trader

The above-mentioned market views and content reflect only the opinion of the author, not that of ayondo. This service is for informational purposes only and does not constitute advice or investment advice.

« Back to the ayondo Blog