what madness, page-8

i think the weakness is all about options expiry.

option holders getting panicky and taking whatever they can get, and this being capitalised on by traders (see the opportunistic lowball bids). and the heads are following the ops down. this is obvious from the trading following the option expiry announcement. perhaps some want the ops to expire worthless so they can get a placement on more favorable terms down the track?

the last time i saw this sort of thing was with MGO/MGOO. look at the chart with the steep decline leading to 28 Feb around expiry time where the options were barely kept in the money with heads knocking around the 20c ops conversion price. fundamentals did not change at all during this time (was generally a weak market but MGO was way overdone compared to materials index). management did not have any big news to lead into expiry but they did just get it over the line with 90% conversion. of course the price has recovered 65% by now!

i see the same happening with KSX unless management have some amazing news to deliver. even then it may struggle.