1st Half Result, page-25

ikj64, it depends on one's view of how the market operates. IMHO, large well funded market makers dictate which direction the market will head, they control the price. They look for perceived good news or perceived bad news to drive the price up or down to generate profits. The key word is perceived, not necessarily whether it is warranted based on concrete information and fundamentals. The intention in a down swing is to accumulate at a lower price, this is achieved by creating selling pressure by selling stock and/or shorting and buying back through various nominal accounts to control the price downwards - sweeping up retail holders (or perhaps some bigger funds who want to move on to other things) along the way until reach their target price or other market buyers come in to buy and weaken that strategy. The opposite would occur to drive the SP upwards.

For retail investors we need to decide whether the price action is just as described above or if it is based on some long-term deterioration in the quality of the business. Needless to say if an investor feels it is the latter then sell sharpish, if an investor feels it is the former then observe volumes to help determine the bottom and buy-more in that scenario it is almost guaranteed to reverse upwards.

In Cash Converters case. I think the catalyst is perceived bad news due to loss (explained technical loss) regulation, flagged slightly lower revenue Jan this year and UK. In my opinion none of that is warranted so it is perceived trading and therefore the SP will bounce back quickly.