Thursday, December 2, 2010

Stock of the Week: Pumpkin Patch Ltd

Pumpkin Patch Ltd [PPL.NZX] shares have taken a dive over the last 2 weeks.

From $2.00 back on November 22 and off a 52 week high of $2.32 in mid April the share price closed at $1.71 yesterday. (see 2 month chart above) This is a substantial 15% fall.

The only significant news that could have impacted the share price is the resignation of Chairman Greg Muir and the sale of a 1% shareholding by Onepath on November 30. This partial sale of a round a 8% overall holding would have been made due to profit taking on a share price that has recovered substantially over the last 2 years. (see 2 year chart below)

The full year 2010 profit out late September was exceptionally good when the dire economy is taken into account but perhaps the uncertain outlook from management didn't fire the buyers of this stock.

Whatever explanation for the drop this provides a good opportunity for long term investors to put this stock on their watchlist for appraisal for their own portfolios.

Buy on further weakness if you already had this company in your sights.

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?

I'm buying
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

Allan Hubbard: Man Out of Time - By Virginia Green

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c Share Investor 2010

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