How many times have you seen a company's SP swept up to insanely irrational highs with no fundamentals to back it up, just feeding off its own success and the greed and FOMO of traders?
Same thing happens with shorting sometimes. There was already negative market sentiment towards TWE due to tariff fears and structural changes to the wine market, I reckon the drop caused by the CEO news hit some stop losses and triggered a shorting feedback loop.
Of course, they might know something we don't about upcoming downgrades. But TWE is starting to hit levels where even with a dowgrade factored in it's still reasonable value IMO. Trailing yield pushing 5% at 70% franking. That yield will put a floor in somewhere, just not sure exactly where.
TWE Price at posting:
$8.17 Sentiment: None Disclosure: Held
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