Basler - Bearish overreaction?Basler presented their figures yesterday, 4th November. Numbers were all in all strong. The demand side is solid, with orders seeming to lead to peak production at least until year's end. However, production capacity is limited by the general situation of limited and high priced raw materials. Especially the high rised material prices dampen the margin.
In a nutshell - pretty much the standard situation of companies within the comparable industry. The solid outlook being regarded, I consider the most recent down swing of currently -20% as a bearish overreaction.
From a technical perspective Basler has built a strong uptrend since Q1/2020. The most recent swing low @134.60 might be strong enough to hold.
1. part of the position - if triggered - will play the idea of bulls, taking advantage of the recent sell-off (would be a 23%-discount compared to 3th Nov).
Since the trend is strong and company/industry outlook solid, I guess Basler has a good chance to continue furthermore upwards, which will be played with the 2. part.
*** The analysis above is a personal one, and no advise. Make your own decisions ;) ***
