I think we may have found the bottom here.
End of year tax selling added to Amazon fear and we find GXL trading on a PE of less than 14.
Buyers now out number sellers and my experience is that with stocks 'suffering'from tax loss selling if you have a contrary view to the sellers the time to move is a couple of weeks prior to the end of the tax year.
The Directors buying was also quite a statement. That was far from an inconsequential sum of money to invest. Showed a lot of confidence that they thought GXL was undervalued by the market.
Do I want the company to rush to market with their strategy for dealing with the arrival of Amazon?
Not particularly. I trust the management have plans but I would much prefer they got on with running the business and used the next financial report or AGM to address the issue. Not feel they have to react to share price movements.
I don't doubt for a moment that Amazon must be taken very seriously.
Just feel that GXL is now oversold.
