Market's view on Cmo Group
Published on April 2024
- CMO Group PLC, the UK’s largest online-only retailer of building materials, has launched the Landscaping Superstore, offering over 6000 products for garden design and maintenance.
- A significant purchase of 80,000 shares by the chairman, Ken Ford, was noted.
- A large buying transaction positively impacted the stock, addressing an existing overhang.
- Concerns were raised about the small trading volume of CMO’s shares, which might be discouraging investor interest.
- Despite decent financial results, CMO’s stock remains at an all-time low, which watchers find undeserved.
- CMO’s competitive disadvantage relative to larger companies like Victorian Plumbing was discussed, focusing on its smaller scale and lower SEO spending.
- The company’s inventory management and financial strategies, particularly its declining net cash position, were criticised.
- Despite relatively better financial results than the share price suggested, a consistent seller presence in the market was affecting the stock negatively.
- Institutional investors are speculated to be potentially offloading significant amounts of shares, which could lead to further price drops.
- Shareholders were observed purchasing shares at historically low prices, indicating some level of speculative buying based on the company’s valuation.