Greggs correction complete?

Is this the time to buy Greggs after their drop over the last week? Still an extremely solid business with one of the best management teams around.

My only concern is the second wave but they have allowed for that with £150m loan from the government scheme which is now priced in. If there is no full lockdown if we have a second wave they won’t require that emergency capital. Over 50% from the highs and Q2 figures look promising if you can look past the cancelled dividend.

Thoughts?

Bought some for a quick flip.
Don’t use them personally but I see the appeal and they have built a name brand in the UK.

Worth a punt.
Just don’t blame me if i’m wrong :smiley:

There’s definitely some profit to be had if you trade them, they have been volatile throughout lockdown and I’ve personally made a few quid from them.

That said, at this point I’m thinking more medium term. I believe the Q3 results will show an even more positive picture for them and would fully expect the share price to look towards at least 1600 between now and then.

The other positive, as of 29th July, is there are no longer any substantial shorts on them by institutional investors. Whilst they aren’t recession proof, they are certainly not a riskier investment because people love them and we like a low priced treat in tough times. This should also be the case through any compounded Brexit impact.

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… but they still can’t crack the Cornish Pasty market.

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To be honest, I don’t think this would ever be a keeper.
More and more chains are doing similar products and for my area the stores always seem a bit neglected.

That said, money is money - I think a quick return may be on the cards.
Notice the change in sentiment today, everyone getting excited for vaccines with Glaxo and Sanofi … the stars are aligning :star2: lol

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I disagree ref a long term hold although that isn’t going to be my strategy. They have diversified away from High St to kiosk and now delivery which although I’m not sure how that will pan out, gives an indication of a business that doesn’t rest on its laurels.

Disclaimer- I’ve never bought anything from Greggs but everyone seems to love them so I think I’m just strange! :joy:

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I don’t know, I’ve tried a few things from there and I’d say you probably aren’t missing out.

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Interesting currently trading at 1,233p which is lower than what it was on 22 March (1,292), during market crash.

Closed at 1199 which is either a massive red flag or a green light to buy!! Take your pick.

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I would strongly advise you to avoid them. They have lost their competitive advantage. Literally every single supermarket now does some kind of hot food in store for more or less the same price… If you really want to invest in the UK then go for FTSE 100 & FTSE 250 - VUKE or VMIG.

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