Being playing with my excel spreadsheet and figured out that if it closes at 94c, and you own the shares and take up your entitlements, you would breakeven if the price of the shares on opening tomorrowdropped by 11.7c. you would make a profit if fall is less than 11.7c and would loose if fell by more. The drop would range down to 9.5c if the shares close at 86c.
This is approximately a 12% drop. given a potential 100m shares, some spooking could see a way bigger drop given only 4-5m turnover today. As has said before, nobody wants to be last of the ship, particular when it seems to sprang a leak.
My guess is that tomorrow will see some people get back in at prices below those that they sold
Again, in the long term those that hold today or buy tomorrow will both make a lot of money, the only difference being whether one made a 500% return or a 700%. (assuming a $5 future price). but in absolute terms made either $4.04 (bought at 94c) or $4.30 (bought tomorrow at 70c)
AVX Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
