European Opportunities Trust (LON:EOT) Trading Up 1.5% – Should You Buy?

European Opportunities Trust (LON:EOT)’s stock price shot up 1.5% during trading on Tuesday . The stock traded as high as GBX 832 ($11.04) and last traded at GBX 828 ($10.99). 41,502 shares were traded during mid-day trading, a decline of 77% from the average session volume of 181,273 shares. The stock had previously closed at GBX 816 ($10.83).

European Opportunities Trust Price Performance

The firm has a 50-day simple moving average of GBX 861.37 and a two-hundred day simple moving average of GBX 835.81. The company has a market capitalization of £513.59 million, a price-to-earnings ratio of 6.42 and a beta of 0.86. The company has a current ratio of 0.14, a quick ratio of 0.11 and a debt-to-equity ratio of 9.14.

European Opportunities Trust (LON:EOT) last issued its earnings results on Friday, February 7th. The company reported GBX (1.54) (($0.02)) EPS for the quarter. European Opportunities Trust had a return on equity of 12.84% and a net margin of 88.38%.

About European Opportunities Trust

Objective of the Company

The objective of the Company is to invest in securities of European companies and in sectors or geographical areas which are considered by the Investment Adviser to offer good prospects for capital growth, taking into account economic trends and business development.

Investment Policy

The Company will, at all times, invest and manage its assets, with the objective of spreading risk and in accordance with the following policies:

Investment Restrictions

Notwithstanding the broad powers of investment available to the Company as a closed-ended fund, the Board has adopted the following investment restrictions:

no single holding shall constitute more than 10% of the Company’s total assets (calculated at the time of investment);
the Company will not invest in unlisted securities;
the Company will not invest in derivative instruments, whether for efficient portfolio management, gearing or investment purposes;
the Company will not invest in other listed closed-ended investment funds.
the Company shall not take legal or management control over any investments in its portfolio; and
not more than 50% of the Company’s investments may be in securities which are not qualifying securities or government securities for the purposes of the UK ISA Regulations.
Borrowing limits

The Directors consider that long-term capital growth can be enhanced by the use of gearing through bank borrowings.