WCC: 25% down in a week.Hello Travis. Any clue from Thinktolator about this important leg down of WCC ? Currently not worried but for sure surprised. Just inetersted to hear your view on this. Thank you
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I’m not aware of any specific reason for the latest drop in the share price. They do have some debt, and do depend on infrastructure investment, particularly in electrical
and communications projects, but so far they remain almost giddy with delight at the earnings growth they expect this year. Maybe that will change next quarter, and investors are anticipating that… we’ll see.
I still think WCC is quite
compelling here, but distribution is a low-margin business, and WCC was a mediocre business before the Anixter acquisition… it is certainly possible that they’ll hit
some meaningful snags.
Hello. So one year later, March 2o23, same situation. Strong run up to over 170
Loss of 20% in a bit more than one week.
Does anybody know what the reason for that drop is? Or was?
….and, will the decline continue, or still a good entry point?
I have been following WCC since Dec 2022, it certainly has its ups and downs. I didn’t purchase in Dec 2022, then it ran up like crazy to the $170s. I ended up buying when it came back down to under $140, and now it is running again. Lots of upgrades, but I will likely trade out if it exceeds $180s, since it appears the float is quite small and easily flucates perhaps because of the low volume?
I have made some money on $155 July calls, still have some left I purchased when the stock was under $140. Not sure I won’t divorce when I have made my money, and certainly will date again if (when) it sinks under that price I see it as a must purchase.