30th Apr 2020. 8.19am

Regency View:

CLOSE – Johnson Service Group (JSG)

Regency View:

Johnson Service Group (JSG) – Close at 126p

Two crucial behavioural characteristics of successful long-term investing are:

1. Be patient when others are panicking

2. Know when to cut your losses

These seemingly basic principles can make or break your portfolio.

Johnson Service Group shares suffered a brutal sell-off in early-March and we have remained calm and patiently waited for a bounce.

This bounce has taken prices back to their short-term mean (20-day moving average) and during the last week we have seen volatility start to contract, making the shares vulnerable to second leg lower.

Communication regarding the impact of the pandemic from the firm has been incredibly quiet compared to other stocks within our portfolio and this silence speaks volumes. We believe the timing is right to close our position.

JSG 10-Month Candle Chart

JSG 10-Month Candle Chart


All content is provided for general information only and should not be construed as any form of advice or personal recommendation. The provision of this content is not regulated by the Financial Conduct Authority.