Raheem Sterling, once a Liverpool wonder-kid now a Manchester City and England superstar. Sterling is Football Index’s 5th most expensive stock. This piece is going to investigate just why that is, what the future holds for this player and what effect that will have for traders the stocks price.
Sterling, currently priced at £6.30 as of writing, seems to be one of the best wingers in the premier league who arguably plays for the best team in the league. The player gets better and better every single season it seems having a standout season last year and opening this season with a huge statement scoring a hat-trick on the opening day, seeing a 10% increase since then. Is being the 5th most expensive player justified Well he has won a media buzz dividend only 16 times [accounting for a £0.69 yield] and 3 performance dividends [a £0.20 yield]. Which isn’t entirely great and rewarding for holders. In comparison, Harry Kane priced at 4.96 has won 48 Media buzz dividends and 11 performance dividends. Now the reason I choose Kane for comparison is that I believe he shares a majority of common denominators that holders value so much in Sterling. Both are English, both have significant impacts on their teams winning ways, both guaranteed starters and both are a similar age (with only a year difference.) The two goal machines are seen as England’s main front faces with Harry Kane been given the arm band and Sterling also having it wrapped around his arm in the past year. Now I’m not trying to say everyone should buy Kane as is he clearly the same, that’s far from it. It is SO IMPORTANT to look at comparable players situations, stats and style of play when justifying and wondering if a layer is worth his value or not, and predicting if there is a rise or decrease coming. Is comparison the only factor to do this, absolutely not, it doesn’t work like that. BUT it is important as a basis and benchmark.
So why is it Sterling is £1.30 plus more expensive than Kane? For me, I believe it to be down to Sterling being a much more exciting, head line grabbing layer. Although it doesn’t stand out in Media buzz wins, Sterling is always in the English media and is still only 24 and is the future of the England national team and with European qualifiers coming u and all leading to the Euros 2020, Sterling will be everywhere and his forever improving performances will for sure grab both more media and performance dividends. So for me this high price is all holders that have at least a year holding of the stock, if not more, in mind.
As he continues to impress week in week out, I personally only expect him to only keep going up and up more. If mbappe doesn’t start returning dividends for holders soon, I can see a lot of the money being swapped over to Raheem. I hold the player, he takes u just under a 2% stake in my portfolio and I am up 77% return on him and have seen a 6% return in dividends since purchasing.
Sterling played 34 league games for City last season scoring 17 and assisting 10. Jadon Sancho, also played 34 league games last season scored 12 and assisted 14. He is the most expensive player on the index, as of writing. I understand people are buying into Sancho for his youth but stats wise, Sterlings’ price can be much attractive to traders. He has an average PB score of 95 with some highs being 268, 254, 201.
One last thing about Sterlings’ price, is unlike his surrounding peers in FIs most expensive stocks, Sterling only has a 3% spread. This is incredibly low looking at the other top priced layers, and all has to be taken into account by traders when purchasing a highly priced stock.
As for exit plans with Sterling holders, I can see a lot of traders exiting in and around the Euros. England, don’t really have the best track record at tournaments, except of course their most recent. I predict a lot of traders will be significantly happy with their profits from Sterling gained through out the season, hoping he has another great one, the layer will have seen a huge increase in the lead u to the tournament and possibly opening few games and most traders will not want to chance what a tournament exit would do. Its a specific bold prediction, but I’ve seen it time and time again. These are the kind of exit strategies you need to be coming up for all your holds. Rough predictions and clear goals in mind as each player is different. For Sterling, that’s mine. Who knows, maybe even the likes of Madrid or Barca could bid huge money for the city winger in the near future, I wouldn’t say its impossible. All scenarios must be evaluated by traders.
Do you hold Sterling ? Why, Why not ? What return do you have on him ? How long are you planning on holding ?Let us know. Thanks for reading.