Ann: Pause in Trading, page-45

this was a $35 dollar stock in October - What changed?

Trading Update:
We now expect FY20 underlying EBITDA - including the impact of the stronger Australian
dollar – to be in the range $106M to $109M (at actual exchange rates to November and A$1
= US$0.74 for December). This is equivalent to a guidance range of $108M-$111M applying
the originally assumed exchange rate of US$0.70 for the second half. Second half underlying
EBITDA is expected to grow at 30% plus over the first half, applying first half exchange rates
to second half performance.

The long-term trends for our business remain very positive. Spending on artificial intelligence
is growing rapidly at 28% annually1 and AI adoption should accelerate in a post-pandemic
environment2. Further, online advertising, a major source of revenue for our key customers
and a reasonable indicator of their spend, is forecast to rebound strongly in 2021 according
to analyst forecasts

In other words, EBIT was 30% lower than expectations

Fast forward 6 months and shareprice is down 65%, PE is a healthy 18

The market can get irrational and at this point the risk of going higher is far greater than the risk of going lower = Logical buy unless you feel the company is going bankrupt or further downgrades. Given today's lacklustre and pointless speech has said nothing new, its an overreaction and one could argue a good mechanism to charge momentum with buyers inevitable going to jump in at these lower prices. Shorters in-turn will move onto to the next thing to manipulate



Also worth noting, technology day boost the share-price from 20 to 40 last time. I wonder what differentiation they have been investing in and how that far that changes product / competition sentiment

Regrettably however, the china cloud is always going to keep a lid on this in the short-term

Lets see what the trading halt says - hope its not another speech from this CEO