Opinions on the stock market: Swatch
Article written on 1 February 2024
The Swatch share is at the same price level as in the year 2000, even though the company has more than doubled its turnover and profit during this time. The weak share price can be attributed to the vague corporate strategy, a lack of vision and poor communication with shareholders and financial analysts.
Although the figures for the past year were not that bad, the share price has been down 10% since the beginning of the year. Investor sentiment towards Swatch is currently much too negative. This opens up an interesting trading opportunity. To re-qualify as an attractive long-term investment, Swatch must urgently improve its corporate governance. It also does not make much sense to sit on an ever-growing mountain of cash. Over the medium term, share buy-back programmes and significant increases in the dividend will be necessary – these opportunities have again been missed this year.
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