On an official visit to the company’s plant, Craig notices the reduced number of trucks going out of the factory. On his earlier visits, there would be long queues of trucks carrying cement bags, waiting to move out of the factory.
After returning from the plant, Craig speaks to the suppliers of Rocky & they state that Rocky has reduced the purchase orders for the materials. He also reads an article in a business magazine that the demand in the construction & infrastructure sector has slowed down.
Craig concludes a slowdown in the construction & infrastructure has begun to hit cement industry & Rocky has responded this by reducing the production.
Anticipating that this will cause the the stock price of Rocky to fall, Craig issues a Sell recommendation for Rocky.