Shares in ( ), the retailer, have fluctuated wildly over the past four months. Unfortunately, this period of volatility has coincided with me taking a position. In August, the stock was changing hands for around 130p.
That’s when I first invested. Six weeks later, the share price had climbed to just under 160p. On 22 November, it slumped to 93p.
Today (13 December), it’s around 102p. This is particularly . The revenues and earnings of the UK’s largest listed companies are generally more reliable.
This should mean fewer shocks for investors. But I don’t have buyer’s remorse. That’s because .
Although I admit it’s difficult, I try to ignore short-term price volatility. A quality stock should consistently deliver earnings growth, helping to increase its market cap. And I continue to believe that JD Sports is a classy business.
Caught in the crossfire But it’s unfortunate that investor sentiment towards the retailer has apparently suffered due to well-documented problems at . As the chart below shows, there’s a high degree of correlation between movements in the two stock prices. This is probably not surprising given that it’s estimated that approximately 50% of JD Sport’s revenue comes from the sale of Nike’s products.
Indeed, the British-based retailer describes itself as the American sportswear giant’s leading global partner. But in the world of sports fashion, I believe there’s more to life than Nike. As the table below shows, there are plenty of o.
