Why Brambles Ltd Share Price Jumped 6% Today

Brambles Ltd [ASX:BXB] climbed 6.45%, to a high of $10.22, this morning.

The jump wasn’t enough to recover from the stock’s 24% tumble in the first two months of this year. But sentiment surrounding the stock has certainly lifted.

What happened to the Brambles share price?

Today, Brambles reported sales for the first nine months of FY17. The company generated US$4.09 billion (AU$5.42 billion), up 4% on the prior corresponding period.

Overall, our business delivered a solid performance in the third quarter despite ongoing macroeconomic uncertainty, softer FMCG demand in Southern Europe and the US, and robust competition in most markets,’ Brambles CEO Graham Chipchase said.

What now for BXB shares?

The trouble with companies like Brambles is that it’s hard to find growth. Pallet revenues, comprising more than 75% of its business, rose by only 2%.

You might be better off looking at companies with huge potential for future growth, such as those in the small-cap space.

Sure, they are riskier than your average blue-chip stock. But if you invest only when the potential upside is greater than your downside risk, you could potentially make serious returns.

Small-cap specialist Sam Volkering would know. Last year, Sam led readers of his advisory, Australian Small-Cap Investigator, to small-cap gains like 368%, 463%, 103%, 185%, 296% and 208%.

In a brand new Money Morning report, ‘Top Three Aussie Small-Caps to Own in 2017’, Sam reveals the three ‘must-own’ small-cap stocks for 2017.

To get your free copy of Sam’s report, click here.

Regards,

Härje Ronngard,

Junior Analyst, Money Morning

[ampBannerMM]


Money Morning is Australia’s most outspoken financial news service. Your Money Morning editorial team are not afraid to tell it like it is. From calling out politicians to taking on the housing industry, our aim is to cut through the hype and BS to help you make sense of the stories that make a difference to your wealth. Whether you agree with us or not, you’ll find our common-sense, thought provoking arguments well worth a read.

Money Morning Australia is published by Port Phillip Publishing, an independent financial publisher based in Melbourne, Australia. As an Australian financial services license holder we are subject to the regulations and laws of Corporations Act and Financial Services Act.


Leave a Reply

Your email address will not be published. Required fields are marked *

Money Morning Australia