- Previously, I have shorted 
NVO when it was in $75-85 when moat was weakening and then went long around $58 to $75 for 40% on the long side. Everything is documented in my two posts.
- People are asking me ifNVO is cheap or not. After cutting guidance, I believe most of the estimates for EPS about NVO are way off which would be revised downwards.
- At the same time, I believeNVO has kitchen sinked their guidance because of new CEO transition which is very common in the publicly traded company.
-NVO might not be cheap after cutting guidance honestly but not overvalued either.
-NVO could be a dead money for some time 6 months, 1 year or 2 years who knows?
- But I know that weight loss industry in general is growing overall at least till 2030 and beyond.
- Some concerns I have isNVO leadership is getting challenged by 
LLY so it could be possible that NVO might get lesser piece of the pie. However, overall piece is growing along with it so NVO should continue to grow but at a lower rate than earlier.
- Net free cash flow should grow and company might return on investment to shareholders via share buybacks?
- Finally, I am buyingNVO in increments and have bought first lot of shares in $50.xx and will continue to add more if it drops more. I think NVO can test 200 monthly moving average @ $35.
- I have marked the accumulation box in the chart for your reference.
NVO when it was in $75-85 when moat was weakening and then went long around $58 to $75 for 40% on the long side. Everything is documented in my two posts. - People are asking me if
NVO is cheap or not. After cutting guidance, I believe most of the estimates for EPS about NVO are way off which would be revised downwards. - At the same time, I believe
NVO has kitchen sinked their guidance because of new CEO transition which is very common in the publicly traded company. -
NVO might not be cheap after cutting guidance honestly but not overvalued either. -
NVO could be a dead money for some time 6 months, 1 year or 2 years who knows? - But I know that weight loss industry in general is growing overall at least till 2030 and beyond.
- Some concerns I have is
NVO leadership is getting challenged by LLY so it could be possible that NVO might get lesser piece of the pie. However, overall piece is growing along with it so NVO should continue to grow but at a lower rate than earlier. - Net free cash flow should grow and company might return on investment to shareholders via share buybacks?
- Finally, I am buying
NVO in increments and have bought first lot of shares in $50.xx and will continue to add more if it drops more. I think NVO can test 200 monthly moving average @ $35. - I have marked the accumulation box in the chart for your reference.
Note
Plan is to build a position incrementally on major red days like today!Note
Potential end of downtrend around $35-40 range That's where I am targeting to add heavily
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.