It has been another tremendous week on Football Index with plenty of players rising huge amounts.
Today's Weekly FIC covers this week's risers and what to expect over the upcoming weeks with the dividend increase approaching.
Summary of the week
In form players have been rising considerably. 9 players have risen onver 20% in price this week. 4 of which (Edwards, Foden, Greenwood and Saka) are young English players. The other 5 players (Cuadrado, Dybala, Kubo, Pulisic and Saint-Maximin) have been in particularly strong form recently.
There is currently a lot of momentum and confidence in the market due to the anticipation of the upcoming dividend increase which has helped the above players rise so much recently.
Many traders will still be holding their balances back ahead of the dividend increase and it is likely that we will see massive rises if dividends do increase a considerable amount as expected.
Is there growth left in recent risers?
Of course this depends on many factors, but a lot of players who have risen recently due to strong performances are likely to rise even further if we have a signficant dividend increase.
Recency bias and FOMO play a huge part in short term rises and so the players which perform well just before and just after the dividend increase are likely to rise even more so than they usually would under 'normal' market conditions.
Ultimately, in the short term in form players and players suiting the current market trend (Young, English) are likely to rise further if we do see a big dividend increase.
Longer term, some players that rise in the short term around the dividend increase are likely to drop in price if their performances do not continue to improve. Therefore, timing sales will be very important if considering buying into young players, especially if they have already risen.
Some players will continue to rise further longer term as long as they continue to improve and develop, but they may not be such strong value compared to the many other players that can currently be snapped up at considerable discounts via matched bids due to the lack of liquidity in the lower end of the market.
Top risers of the week (Currently over 50p)
Mason Greenwood has been the most noticeable riser this week, increasing an incredible 43.38% in price in just a week. It is unlikely Greenwood would have risen so much if there wasn't so much momentum in the market at the moment, but due to him proving himself with very strong performances and earning media dividends, his recent rise certainly makes sense under the current market conditions.
Longer term, Greenwood could still be a very strong hold as his ceiling is so high and he is likely to earn plenty of media dividends in the short term as well as earning more match day dividends in the future. Greenwood is now at a very high price, but whilst he continues to develop, he is likely to continue to rise in price whilst the market rises. Greenwood is also likely to benefit from Manchest United playing in the Europa League.
Christian Pulisic has risen 36.5% this week as he has performed particularly well since the return of the Premier League. However, his highest PB score since the return of the Premier League has been just 125. Pulisic is quite an inconsistent player and so if his form drops then his spread is likely to widen. Pulisic may not rise so much compared to other players once the season ends as his recent rise has not been due to such a strong underlying improvement in his chances of earning dividends.
Juan Cuadrado has risen 34.78% this week. Cuadrado has proven himself as a dividend winner again this week and has actually returned a remarkable 32p in match day dividends this season. As can be seen via the Index Edge data below, Cuadrado is very capable of hitting high peak PB scores. Cuadrado's rise shows how the demand for some older, high PB scoring players could pick up following the dividend increase as some lower priced players could very possibly return their full price in dividends, long before their 3 year expiry date with higher payouts.
What's coming up?
The announcement of the new dividend table is this Thursday (09/07/20) and Football Index Club will be here to offer additional trading advice as always. Following the last dividend increase, over 20 players were quickly highlighted on FIC and they increased over an average of 15% just 30 days later so hopefully we will see more huge returns over the upcoming months!