European Opportunities Trust (LON:EOT) Reaches New 1-Year High – Still a Buy?

European Opportunities Trust (LON:EOT)’s share price hit a new 52-week high on Monday . The stock traded as high as GBX 965 ($12.89) and last traded at GBX 962 ($12.85), with a volume of 1378 shares traded. The stock had previously closed at GBX 959 ($12.81).

European Opportunities Trust Stock Performance

The firm has a 50 day simple moving average of GBX 921.98 and a 200-day simple moving average of GBX 880.70. The company has a market cap of £581.20 million, a price-to-earnings ratio of 7.26 and a beta of 0.86. The company has a debt-to-equity ratio of 9.14, a current ratio of 0.14 and a quick ratio of 0.11.

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.