What to wait from now on for the SITI – B&T stock after our Strong Buy judgment and the subsequent 50% rise?

It was on March 1st this year when our Research Department entered into its own List of recommendations the SITI – B&T stock with the Strong Buy Long term rating and a valuation of € 4 per share. What happened in the meantime?

Let’s make a premise first.

The society SITI – B&T which capitalizes 38 million euros on the stock market, designs and manufactures systems for the tile manufacturing industry all over the world.

The stock closed the trading day of November 5th at a price of 3.04, an increase of 0.66% compared to the previous session. Since the beginning of the year, it has marked the low at 1.89 and the high at 3.50.

From March 1 to today, the price has risen by about 50%. What to wait from now on for the SITI – B&T stock after our Strong Buy judgment and the subsequent 50% rise?

Summary analysis of the financial statements

The recommendations of the other analysts (only one opinion) estimate a fair value in the 3.20 area, up from the previous 2.80. Our weighted calculations on the financial statements of the last 4 years, on the other hand, lead to a fair value of around € 4.50 per share, up from the previous judgment of € 4.

What to wait from now on for the SITI – B&T stock after our Strong Buy judgment and the subsequent 50% rise?

Investment strategy

For all those who bought the stock as per our previous indications, raise the stop loss / profit to 2.58.

Until there is a weekly close below 2.78, prices could continue to rise in a few weeks towards the 3.50 / 3.65 area and in the following 6/9 months towards the 4.62 area. In the short term, a daily close below 2.90 is dangerous.

What could be the dangers?

Given the low capitalization and the small trading volumes (10., 500 pieces per day) we could see strong spikes in volatility with few pieces traded. The advice is to keep betting on long-term value.