No news has been announced to suggest that CCP has a problem. CCP has no operations in Europe, so military action there should not be a significant negative. CCP was not cheap within the $30-$34 range, but there seems to be no reason for the SP to drop below $30.00, other than market mood, or one or more institutional holders wanting to sell now. I bought 400 on 19 January at $30.13.
I looked into the two issues below, but I came to no strong feeling for the sell off, but I may as well post what I wrote.
Relatively low liquidity
I have read in the past that CCP's share turnover ratio is low. I calculated the average for the last 254 trading days, and annual share turnover was 73%. On a daily basis (divide by 254) it is .3%. This seems about average to me, but I found nothing to compare it with, and I did not go to the trouble to calculate the yearly average of other stocks. Suffice to say that a concerted effort to sell CCP shares by one or two institutional holders may have a material affect on the SP.
Today, Monday 8/03/22, there were 317,209 CCP shares traded (just below half a percent), so that is higher than the .3% average per trading day.
Institutional placement April 2020
9.6 million shares were issued ar $12.50 via an institutional placement two years ago (finalised 30 April 2020). Some of these shares may, or may not, be a factor, but why sell now at a lower price than in the recent past?
CCP Price at posting:
$27.86 Sentiment: Hold Disclosure: Not Held
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