The downward move finally came. This was after Stellantis announced that they were cutting their projections by quire a margin. It has reduced its operating income margins to 5.5% down from 7%, when previously it had projected double digit range. The company is expecting North America, its largest sector to experience a lot less in sales. Its cutting their projections.
Stellantis is definitely tightening its belt in expectation of the gloomy outlook on the auto industry for the coming year. They are offering incentives and cutting their expectations. They had a more aggressive growth so it is understandable that they will receive a harsher slump than other companies like $Ford(F)$ and $General Motors(GM)$ , but the auto industry has these slumps and booms.
While my entry is now much higher than the stock price, I'm sitting at a much better position than the peak. It should also be noted that the recent spike in unrealized profits I had before today was because of the bulls trying to pump the stock price in expectation of the new CEO. Buying one news instead of fundamentals is never a good idea. And projections versus actual results are tow different things. Companies that are aware of their spotlight in news trader communities, tend to place a lot of importance on their projections and earnings calls. You guys already know from my previous post, what price Stellantis values themselves at, so they might be cutting expectations by a lot so that their lesser earnings this year can still beat expectations.
So I'll keep calm and keep averaging in. For the defensive investor, the long hold is their bread and butter.
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