Watching some market action lately I was a little bit surprised seeing the movements in two of the stocks I follow. As I don't really understand what exactly happened, I hope somebody with more insight here on ASF will be able to enlighten me.
1. BKL released a the profit data for the third quarter recently. Company seem to be running smoothly and profits just keep rolling in. Yet since the news hit the market BKL share price is pretty much flat or even slightly retreating.
Why is that?
2. NAM (major aussie cotton grower) is a similar story. Sure the profits little lower than last year but company is still easily in black (same cant be said about lots of others in the industry), they do have a huge market share so should withstand the short term struggle. Yet the market now values it about 20-30% below its NTA alone hence completelly disregarding its market position and existing earning power.
What am I missing?
And I do have the full story Mr Market strikes again on my blog if anyone needs more info.