In my view, the market was expecting a worse report compared to the preliminary report. Apparently, this has not been the case, so that the market should react positively simply because the report is better than expected. I predict a significant rise in the share prices starting tomorrow due to two reasons.
1. Lack of shares available for selling. After holding through an extremely difficult period, I do not not think any sensible investor would sell their shares at these prices now, particularly when they can see the light at the end of the tunnel.
2. possible short covering. I do not expect any more loss making reports for the next few years. This will be the last, which means 25 millions shorts have to close their positions soon.
Look forward to the actions tomorrow.
SGH Price at posting:
38.5¢ Sentiment: Buy Disclosure: Held
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