Is CSL forming a base.
I’ve been watching CSL since it spectacular fall to $93 odd dollars before recovering modestly to where it currently closed today at $98.47.
Wow. Who saw that coming.
Anyway I’ve been watching it since it’s screaming 30 percent drop wondering what the hell just happened?
I understand that the market reacted violently to the recent 90 day update but wow. In my view it dropped way below its inherent value.
Let me explain. CSL is still highly profitable. 15.2 bn turnover to a 3.1bn net profit. So the current share price drop seems a bit over done. Anyway the market moves on sentiment as much as it does real financial outcomes.
As we know this is more about poor decisions made by the company that lost some money. Quite a bit actually. But the market is missing the still highly profitable bit. And profits climbing bit. So to me this is a wait for good news to realise inherent value time.
Anyway back to the market. The last few days have been encouraging. We have seen high volumes since the fall and quite a bit of volatility early on. But the last few days have been less volatile with higher lows and a very tight trading range. Today the low was in the high 97s. It opened at 98.35 and closed at 98.47.
So let me ask could this be a base forming?