2024-06-11 16:05:14 ET
Summary
- Bristol-Myers Squibb is showing signs of potentially being a value trap.
- The stock price has fallen more than the underlying value of the company, but a price to free cash flow ratio of under 7x seems pessimistic.
- Technical support needs to establish itself before a bullish stance can be taken, but the dividend remains well covered and the balance sheet shows no immediate distress.
By Levi at Elliott Wave Trader, Produced with Avi Gilburt
I would imagine that in our time as investors, the majority, if not all, have been caught at least once. It’s that one company that just becomes even more of a bargain. The valuations are apparently so compelling that we may even double down on a losing stance, assured of our position and sleeping under the blanket of a seemingly warm dividend. Yet, the price continues to flounder and that blanket which used to provide so much comfort simply does not cover what it did before....
Read the full article on Seeking Alpha
For further details see:
Bristol-Myers Squibb: Could This Be A Value Trap? (Technical Analysis)