The has had a good year and the UK stock market is doing great. Many stocks have hit new highs in recent months and some long-struggling ones are making a comeback. But not all of them.
Some companies just aren’t performing well and their future looks bleak. Two I’ll avoid this month are ( ) and ( ). Burberry I’ve been waiting for Burberry to recover and I genuinely expected it would happen last month.
For a brief period, it looked like the key 1,000p level would hold. It did in 2016 and again in 2020 after Covid. But on 26 June it made a move down and is now trading at 850p, near a 14-year low.
The drop indicates there are almost no buyers left at that key level. The following day (27 June) major broker put in a on the stock and several fund managers started shorting it. I wish I could say a recovery is imminent but the charts reveal little support below 1,000p.
Now down 60% since last July, the UK’s most recognisable luxury fashion brand has had a tough year. But rather than bad management or changing consumer habits, I think it’s just suffering from a retracted economy. After all, it’s almost 200 years old so I don’t think it’s going away any time soon.
In the 15-odd years after the 2008 financial crisis, the shares grew 1,530%. Once the economy recovers, it’s possible it could repeat that performance — or more! But I fear it may be a while before that happens. In the meantime, shareholders can take some comfort in the 7% .
Diversified Energy Company Fu.