I have seen this before with ERM Power (EPW.AX). The share price of the company nose dived in 2014 when the company reduced EBIT forcast from $102m to $96m, a change of $6m. The share price went from $2.40 to $1.51 in few months. That's 34% share price drop for 6% forcasted drop in EBIT. Yea go figure!! Well I managed to buy heavily near bottom and made a killing and the share price is back up now trading at $2.37.
In AFJ's case there is no change in business fundamentals. I'm quite surprised that a capital raising alone caused the share price to drop more than 35% from recent high. I love when the market is on sale!!
