There is more to being Oversold

It is 9 years ago, to the week….when Woolworths Group (the Australian supermarket retailer, food company and possible property developer)…..last saw its shares registering an oversold weekly reading.

While this moment is rare, there are nuances to this current (and the previous) occurrence.

Its current downtrend is strengthening.

I’m implying that the stock pice could trade down to the $30 region before finding any exhaustion.

Some investors may be surprised about its recent decline from $40, especially for a supposed defensive stock, let alone should it see $30.

But others wouldn’t be considering its a 2.5% net margin business which is carrying net debt equal to nearly 6 times its EBIT.

November 22, 2023

by Rob Zdravevski

rob@karriasset.com.au