Gavekal Capital: JM Smucker Breaking Down

Wednesday, November 20, 2013

JM Smucker Breaking Down

JM Smucker cut its full year sales forecast from -1% to -4% earlier today. This, along with below expectations quarterly results, have sent shares down over 6% so far today.

FY1 sales estimates had already dropped by -2.4% over the past six months, however, FY1 EPS had actually increased by 2.2% over the past six months.
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JM Smucker pays a pretty nice dividend of 2.1%. However, it has been trading at some rich valuations levels relative to the rest of MSCI World as well as relative to it's own history.

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Overall, the stock has been losing momentum shown by the decline in the average daily price change. If today's decline holds the stock will have broken an uptrend support line.

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