Why is Share Price Crashing?, page-2

Hi ASXwatcher007, I used to hold PBH awhile back but sold out a few months when it announced the CR, however I still follow the stock.

From what I can see the loss of market share is part of the reasons for the drop, however for me it was the cash burn that made me feel this investment is too risky for my liking. It is all fine and well if you are burning cash at a high rate and acquiring market share, however this latest report has suggested the growth is not going smoothly despite all the money invested.

There is always a possibility that this is just a temporary seasonal slow down, however keeping investment here come with opportunity cost. A dollar here waiting for a turn around can be invested elsewhere to make a better return in short term.

PBH is a high risk, high reward play. The management is taking a bet (how fitting eh?) that their aggressive capital investment will increase their US market share and hopeful for a return (or takeover) some point in the future. This latest report shows that the point of return might be further than investors anticipated, and the risk/reward ratio is no longer favourable in their option.

Good luck to all holders and that is just my opinion on the matter! Apologies if this sound pessimistic as this is just my assessment on the reason for the price drop (I guess reasons for price drop are often pessimistic in nature?) Given the recent big drop in SP this can be a high risk speculative play for investors with high risk tolerence appetite! Always DYOR!