European Opportunities Trust (LON:EOT) Trading Up 0.3% – Should You Buy?

European Opportunities Trust (LON:EOT)’s stock price rose 0.3% during mid-day trading on Monday . The stock traded as high as GBX 937 and last traded at GBX 936. Approximately 135,895 shares were traded during trading, an increase of 146% from the average daily volume of 55,279 shares. The stock had previously closed at GBX 932.93.

European Opportunities Trust Stock Performance

The firm has a fifty day moving average of GBX 900.32 and a 200-day moving average of GBX 919.87. The company has a quick ratio of 0.11, a current ratio of 0.14 and a debt-to-equity ratio of 9.14. The firm has a market cap of £436.73 million, a P/E ratio of -21.23 and a beta of 0.86.

European Opportunities Trust Company Profile

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.