Pumpkin Patch Ltd [PPL.NZX] has been out with a profit downgrade this morning and this has seriously affected its share price, it has dropped by more than 9.5% or 15c at time of writing to be trading at $1.42.
There is an overall weakness in retailing stocks at present and just yesterday Hallenstein Glasson Holdings Ltd [HLG.NZX] came out with its own profit downgrade.
The Pumpkins profit levels have been up and down over the last 2-3 years after spending most of its listed life rising and the share price has reflected that.
Most recently it has taken hits from failed expansions into the UK and the USA but now its Australasian units have performed badly for the first time, indicating perhaps something more serious at play.
The company still lacks solid management but they have removed Greg Muir who cost the company millions through their failed expansion outlined above.
The company still has a core of loyal followers and a very strong brand and is well placed to ride out these tough times.
This is a good opportunity to buy on the way down.
I fear though there will be more bad news to come so be patient.
Disclosure: I own PPL shares in the Share Investor Portfolio
Share Price Alert
Hallenstein Glasson Holdings Ltd
NZ Refining Ltd
Pumpkin Patch @ Share Investor
Stock of the Week: Pumpkin Patch Ltd
VIDEO INTERVIEW: Pumpkin Patch CFO Matthew Washington
Pumpkin Patch Ltd: 2010 Full Year Profit Analysis
Pumpkin Patch Ltd move downmarket
Long Term View: Pumpkin Patch Ltd
Pumpkin Patch's North American Downsizing a Prudent move
Digging at Pumpkin's Profit
Long vs Short: Pumpkin Patch Ltd
Pumpkin Patch Buyback shows Confidence in the Future
Pumpkin Patch takes a hit
Pumpkin Patch ripe for the picking
What is Jan Cameron up to?
Why did you buy that Stock? [Pumpkin Patch]
Rod Duke's Pumpkin Patch gets bigger
Buyer of large piece of Pumpkin Patch a mystery
Pumpkin Patch a screaming buy
Broker downgrades of PPL lack long term vision
Pumpkin's expansion comes at a cost
Pumpkin Patch vs Burger Fuel
Pumpkin Patch profits flatten
New Zealand Retailers ring up costs not tills
Discuss PPL @ Share Investor Forum
Download PPL Company Reports
Buy Pumpkin Patch Clothing
New From Fishpond.co.nz
Allan Hubbard: Man Out of Time - By Virginia Green
c Share Investor 2011
The @ of War - Cyber-security is generating a lot of concern for businesses and for national security. Intellectual property, private information and the entity’s reputat...
7 hours ago