THE FINANCE GHOST: The fat and the lean of grocers

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Grocery stores can offer an inflation hedge provided your entry price is reasonable, writes FinanceGhost.

It’s not often that Pick n Pay releases a solid result. As the eternal second-fiddle player to Shoprite, its share price tends to trade in sideways channels without a clear bull or bear trend. This makes it fun for swing traders and disappointing for investors.

In contrast, Shoprite is the master of bull and bear channels. The strategy either goes well or particularly badly and the market tends to overreact to both. The share price was on a charge from 2015 to 2018 as the market fell in love with the growth story in Africa. That story later reversed horribly, taking Shoprite’s share price back down to 2011 levels even before the pandemic.

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THE FINANCE GHOST: The fat and the lean of grocersGrocery stores can offer an inflation hedge provided your entry price is reasonable, writes FinanceGhost.
Source: FinancialMail - 🏆 20. / 63 Read more »

THE FINANCE GHOST: The fat and the lean of grocersGrocery stores can offer an inflation hedge provided your entry price is reasonable, writes FinanceGhost.
Source: FinancialMail - 🏆 20. / 63 Read more »