The company’s latest quarterly reporting was for the period ending March 31st, prior to the Mulvaney advertising campaign. That reporting doesn’t take into account the current drop in sales and orders that have occurred since then. I suspect when this quarter’s numbers are released sometime in July we will see a drop in the share price.
Also, who is currently buying stock and keeping the price close to the 52 weeks high? Is it institutional buyers? Buyers such as Vanguard, Fisher Asset, Edge Capital, Morgan Stanley etc.? Or, is it individual retail investors? That makes a difference when it comes to perceived customer support and actual customer support. When this quarter’s earnings reports are released this summer, that will tell the true story.
Which is exactly what I said in my post. July, I expect to see a short term drop in stock price, and it will return to normal thereafter. By the end of the year, it will hardly be a blip, especially with them running damage control and the amount they are about to dump into that.
No company that loses one-third of its sales of a nation’s most popular brand ‘is going to be fine.’