Been watching the Liquor Distributor Diageo- As the trend goes It had a nice run. Is the trend reversing with more political trends affecting raw materials and the market is unforgiving for non executing brands. In the store the other day. They had a Brand that was on the top shelf and heard it was slowing in sales. IS any one else looking at taking this on from here- Im not sure. Could be a wind down. What catalyst for more alcohol is there from here? Insider buying looks like program monthly buying program. http://www.lse.co.uk/DirectorsDeals.asp?shareprice=DGE&share=diageo 10-Oct-12 Buy Deirdre Mahlan 1768 GBX 10 0 10-Oct-12 Buy Paul S Walsh 1768 GBX 11 0 10-Oct-12 Buy Franz B Humer 1768 GBX 468 0 26-Sep-12 Transfer From Ivan Menezes 0 130,980 0 26-Sep-12 Sell Paul S Walsh 1747 GBX 164,717 0 26-Sep-12 Sell Deirdre Mahlan 28.19 USD 27,576 0 26-Sep-12 Sell Ivan Menezes 28.19 USD 60,496 0 26-Sep-12 Transfer From Paul S Walsh 0 315,972 0 26-Sep-12 Transfer From Deirdre Mahlan 0 52,896 0 20-Sep-12 Transfer From Paul S Walsh 0 176 0 20-Sep-12 Transfer From Deirdre Mahlan 0 176 0 10-Sep-12 Buy Franz B Humer 1692 GBX 490 0 10-Sep-12 Buy Deirdre Mahlan 1692 GBX 12 0 10-Sep-12 Buy Paul S Walsh 1692 GBX 10 0 10-Aug-12 Buy Deirdre Mahlan 1712 GBX 11 0
Just an opinion obviously, but this is a stock I follow. In my opinion DEO is neither a stock to trade short term nor one to be shorting. It's a stock for investors, and a good one. If you were going to short a stock like DEO, and I would not think you should, you certainly would want the market on your side as well. However the S&P is trading in the lower third of its channel. You would want to have both the S&P and DEO at the tops of their channels to even think about shorting DEO. I wouldn't short it even then. There are much better short candidates out there. Never short a stock because you think it is too high. You need a much better reason than that.
Sometimes you need the voice of reason and this sounds like a risk not good enough for the reward scenario. I think I will stay on the sidelines for now. Thanks.
Once again DEO showing weakness. Wondering if the Currency exchange rates will affect their overall sales. Thinking 20% decline may start here- numbers are soft with global consumption due to economics for premium brands.