Hobson: Ferguson Plumbs the Depths

THE WEEK: Morningstar columnist Rodney thinks the very sharp fall in heating and plumbing engineer Ferguson's share price was overdone

Rodney Hobson 29 March, 2019 | 9:13AM

Burst water pipe

I’m not the type of investor who gets up at 7am, digests the morning’s London Stock Exchange announcements and dives in on the stroke of 8am when trading starts. In any case, trading can be quite erratic, and spreads quite wide, in those first few minutes and the initial reaction to news can be overtaken within minutes as wiser heads spot something that impulsive souls missed.

Even if investors do not go so far as to change their minds about a stock, they very often feel that a sharp movement in either direction has been overdone, opening up a buying or selling opportunity.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Ferguson PLC4,484.00 GBX-5.60
Pennon Group PLC1,053.00 GBX-0.09

About Author

Rodney Hobson

Rodney Hobson  is a columnist for Morningstar.co.uk and author of several investing books, including The Dividend Investor and How to Build a Share Portfolio.

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