Provident Financial Plc is a British sub-prime lender based in Bradford, West Yorkshire. It specializes in credit cards, Home Collected Credit (HCC), Online loans and consumer car finance. Vanquish Bank Ltd is one of the subsidiaries of Provident Financial Group Plc. The stock is listed on London Stock Exchange and is a Constituent of FTSE 100.
Falling Knife Reasons:
Provident Drops most ever CEO quits and Probe disclosed.
U.K sub-prime loan provider says full year dividend unlikely.
Loss expected after technology-based sales revamp backfired.
CEO Peter Crook Quits.
Provident Group Plc is a Darling of investors 1 year before but now it is falling nothing like anything. It skipped full year dividend and expected to report the loss. On technical front don’t buy the shares of Provident Financial Group Plc. If you have dump right now. You didn’t see current rate in future to sell. It has the strong resistance near 600.
If one looks fundamentals and argue fundamentals are good stock good get re-rated that is the biggest mistake. Because market veterans are more brilliant than you and me. If a stock falls nothing like anything there is a deep trouble which did not solve immediately.
Catching falling knives is the bad strategy of investing. Don’t follow that while taking financial decisions. If you want to buy wait for the stock to settle and consolidate. And when the stock breaks previous month high comfortably you may consider buying otherwise ignore.