Gavekal Capital: JM Smucker Breaking Down

Wednesday, November 20, 2013

JM Smucker Breaking Down

JM Smucker cut its full year sales forecast from -1% to -4% earlier today. This, along with below expectations quarterly results, have sent shares down over 6% so far today.

FY1 sales estimates had already dropped by -2.4% over the past six months, however, FY1 EPS had actually increased by 2.2% over the past six months.

JM Smucker pays a pretty nice dividend of 2.1%. However, it has been trading at some rich valuations levels relative to the rest of MSCI World as well as relative to it's own history.

Overall, the stock has been losing momentum shown by the decline in the average daily price change. If today's decline holds the stock will have broken an uptrend support line.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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