Baby Bunting

Date of inclusion: 10 March 2021
Share price on inclusion: $5.04

Date of exclusion: 8 April 2021
Share price on exclusion: $5.93

 

Following 17.7% performance since inclusion in Marc & Stuart’s Top Picks, we sold Baby Bunting (ASX:BBN). While there’s nothing wrong with the company from a fundamental point of view, at April 8th close of $5.93 we believe the stock has run into a very strong resistance level between $5.95 and $6.00. There is downside risk and we expect the stock to struggle in the near term and may cool off to at least $5.50, and possible as low as $5.00.

Should BBN unexpectedly break above $6.00, we believe there will be a chance to get in at that same level as the stock is likely to retrace back to around $6.00 following that potential breakout.