DS Smith plc (LON: SMDS) share price has fallen 17% from their September highs in an unprecedented selloff whose trigger is not yet clear.
The last significant announcement from the packaging company was regarding the disposal of its De Hoop paper mill in the Netherlands to De Jong Packaging.
The disposal was announced back in July and was completed in mid-October, by which time the downtrend was in its last stages, which seems to be the only explanation.
Long term investors may find the recent price decline an excellent opportunity to open new positions in the packaging firm, given its solid prospects.
DS Smith is a global packaging company that has taken the initiative to combat the effects of pollution created by non-recyclable packaging made of plastics.
The company has committed to investing £100 million over the next five years in developing sustainable packaging solutions to fight the growing climate impact of plastics and other packaging materials globally.
DS Smith is also leading from the front in embracing modern technologies such as high tech robotics in its manufacturing facilities to improve its operations and produce advanced packaging materials.
After disposing of its De Hoop paper mill, the company intends to use the sale proceeds to expand its Arnstadt packaging plant in Germany and to offset part of the costs incurred as the company invests heavily in its packaging capacity this year.
Industry experts predict that the global packaging industry will grow exponentially in the future. DS Smith is perfectly positioned to capitalise on this growing trend by expanding its market share globally.
However, as short-term traders, we are always looking for opportunities to profit from short-term price swings in a company’s shares. Therefore, the current setup on DS Smith’s daily share price chart presents an excellent swing trade opportunity.
*This is not investment advice. Always do your due diligence before making investment decisions.
DS Smith shares price.
DS Smith share price has fallen 17% from its September high of 467.25p to its current price of 387.55p.
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