mfs preopen, page-9

Hi.
When a stock falls 20% in 2 days without obvious reason (ie an announcement) and on high volume (the two biggest trading volumes MFS has seen) it means that there is information (correct or otherwise) in the market. This is why the ASX was prompted to ask the MFS Board if that had anything that should have been disclosed or could be disclosed. The Board could have said they were in discussions with CIY or something similar. Too much heat got into it. Ppl did not know on what basis to trade. That is not the way the market should operate. Gossip became the basis and ppl were getting burnt.
I am not saying the market response was correct. It was just without logic or basis. We still don't know what the terms of the possible merger are. The ASX want to keep volatility down not turn it up.
MFS price has been under pressure due to their debt and the fact they are a financial stock. If you studied it you would see they have struggled, and when "hedge wobbles" hit our market MFS wobbled a lot. In other words many were thinking hard about getting out. Some did but many did not. Any sort of uncertainty, such as increased US hedge fund worries, greater debt worries, US recession talk, or perhaps the mention of Centro could do it. The Board have to exercise care with their announcements. Mention of Centro at the time could have been better dealt with (ok just my opinion).
If they ever sign a deal with Centro then I am wrong. But no-one anywhere says that sort of deal will go ahead. We'll see what unfolds.
My personal situation, which you bring up, is another matter, and has nothing whatsoever to do with these comments.
Cya