Commentary On Mothercare plc
Title: MTC – MotherCare Disappointing Christmas And Small Trader’s Mistake?
Company: MTC - Mothercare plc
Share Price Then: 45.9p
Author: Ian Smith
Date: Mon 08 Jan 2018
Comments: Mothercare announced disappointing sales over Christmas and the shares opened about 25% down, this has been followed by a rash of transactions that usually accompanies such an announcement.

By 09:00 there have been three times as many trades as on the whole of the preceding Friday, nearly all in the sub £5k range and many sub £2K.

Obviously I have no way of knowing if these are buys or sells but it really looks like small private traders jumping in hoping for a bounce, the problem is the trade volume is normally so low that there is no reason to expect such a bounce.

Jumping in now is likely to tie you into a Value Trap.

Mothercare is a well established business that has tried to do the right things but its share price over the last three years shows a trend of falling with no real positive spikes to suggest a revival is possible.

Once today is over trading volumes are likely to go back to normal and you are likely to be stuck with a share on a slow downward trend.

The moral of the story is don’t just buy on price but also look at what you are buying.
Read Count: 219
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Clarification
The comments on this page are some of the thoughts that I had when considering this company and not a recommendation to take an action or to refrain from taking an action.

As you know we have no information about your circumstances, understanding of your investment goals or the level of risk that is acceptable to you. So it would be completely unreasonable to read these commentaries as recommendations.
Is This Just Pump And Dump?
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Commentaries tend to be created when I look at a share and decide if it is one that I want to buy either now or when I next have an unallocated pot.