The BWX Limited (ASX: BWX) share price is up 9.3% to $1.64 this afternoon even though the group behind the Sukin beauty products has not released any material news to the market since before Christmas 2018.
Back on December 20 2018 BWX warned investors that it only expected EBITDA over the six month period ending December 31 2018 of $7 million and full year EBITDA between $27 million to $32 million. This compares to prior guidance for full year EBITDA to be around $40.3 million.
The share price dropped 40% or so in response to the news as investors worried that BWX was unlikely to meet its downgraded guidance given the poor first half and heavy reliance on a far stronger half-year ending June 30 2019.
Management blamed the result on a "loss of sales momentum" in some of its newly-acquired US brands and softer-than-expected Sukin sales growth.
However, management also flagged that it expected these to be one off problems while the business right-sized itself.
The share price rise today may be a result of believers in the Sukin story trying to get ahead of the curve. Or BWX may have received a sell side broker upgrade that often encourages mum and dad investors to buy into a stock.
