What the! why is it still going down?

F

FormulaOneFan

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Hello all,

I saw this news on FT.com

FT.com / Companies / Personal Goods - Clorox gets sales boost from flu outbreak

The news basically reports clorox has reported increase in sales due to swine flu pandemic. Logically the good news should help its share prices go up but that doesn't seem to be the case. It went down 3% since the start of the day.

What's going on? Is there anything else I missed? could someone clarify please?
 
Seems like an opportunity for some people who have been holding for a while to offload and that could create a buyers markets. Maybe only low bids are getting filled I dunno :-S Check the volume and look at where the price has been in the past.

Maybe people looked at the books/sector realised the higher sales didn't naturally mean higher profits or increase in market share.

Could be a million things. This is why people spend years learning and then get paid to work this stuff out. It's not just black and white.
 
The tide has turned (FTSE).
Always check the tide before you set sail.
Glenn
 
FormulaOneFan said:
Hello all,

I saw this news on FT.com

FT.com / Companies / Personal Goods - Clorox gets sales boost from flu outbreak

The news basically reports clorox has reported increase in sales due to swine flu pandemic. Logically the good news should help its share prices go up but that doesn't seem to be the case. It went down 3% since the start of the day.

What's going on? Is there anything else I missed? could someone clarify please?
Click to expand...

As Glenn rightly says the general market may well have topped, and most stocks are correlated with the broad market. Hardly surprising as they collectively form the broad market.

As with any news of this type, it may well have been anticipated by the market and already factored into the share price.

News itself doesn't matter much, it is the reaction to news that's important. And that reaction is highly influenced by general market sentiment.
 
Rational behaviour has nothing to do with the markets at the moment. But perhaps the market had priced in a bigger increase in sales and was disappointed with the figures....
 
FormulaOneFan said:
Logically the good news should...
Click to expand...

The roots of your confusion come from the use of the word "logically".

Nothing is logical over here :smart:

Once upon a time I heard an interview with a sucessful businessman.
He said "For a taking-decisions position, I would never hire anybody that begins a phrase with 'Logically...', he could bankrupt the firm!"
 
Once upon a time I heard an interview with a sucessful businessman.
He said "For a taking-decisions position, I would never hire anybody that begins a phrase with 'Logically...', he could bankrupt the firm!"
Click to expand...

Is his business still going :)


Paul
 
damn it !
i thought all I had to do to become a millionaire trader was to listen to the news and follow my own logical conclusions ?

you mean there's more to this trading lark than me just making my own half-assed assumptions ??

i hope you're not implying it's a long, hard, rocky road and requires much blood, sweat and tears from me ?
I want the easy life. Hell, I read the Del Boy Guide to Trading Stocks. No mention in there of any hard graft !!
it just isn't fair !
 
rathcoole_exile said:
damn it !
i thought all I had to do to become a millionaire trader was to listen to the news and follow my own logical conclusions ?

you mean there's more to this trading lark than me just making my own half-assed assumptions ??

i hope you're not implying it's a long, hard, rocky road and requires much blood, sweat and tears from me ?
I want the easy life. Hell, I read the Del Boy Guide to Trading Stocks. No mention in there of any hard graft !!
it just isn't fair !
Click to expand...

damn it! I thought asking a question on a forum to understand what factors could affect a share price would result in someone sharing their knowledge and experience but I didn't think I will get a response from a magician who has a crystal ball and he can read my thoughts and see my cunning plan to take over the world!

As del boy would say "You Wally"!
 
Hello all,

thanks for the information. Your comments (both helpful & sarcastic) will help me to learn more about the markets and how they behave. Hope to keep learning and do well in the markets.

Thanks
 
FormulaOneFan said:
damn it! I thought asking a question on a forum to understand what factors could affect a share price would result in someone sharing their knowledge and experience
Click to expand...

that;s my point.
there is NO knowledge !!

trade what you see, not what you hope for !!

good luck.
 
Nothing is logical over here
Click to expand...

I don't agree at all. It may appear illogical to someone watching a chart and reading a news report, who has only partial information, but to someone who thought that sales would increase as soon as swine flu hit the headlines and bought then, would already have bought some time ago and may be looking to offload his position now. The fact that there is a good news story which the trader foresaw back then, might give him an excellent time to offload his position. Added to the general larger market movements FTSE etc. and it doesn't seem illogical. Also you have in that news that there were some declines too, and overall dollar sales were flat.

Also it declined 3% so what?
 
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