There is no question that sentiment moves market in the short term - I make a good living from it. However, it is real economics that in the medium and long term that drive markets.
My point about this is that was the move is pure sentiment and that this is way over-blown which suggests that this a temporary driver for the share price, not a permanent one because no one is talking about profit upgrades. It is very unlikely that this is "just getting started" because the US markets that have a lot of listed Chinese companies and saw a big rise in futures before the market opened on the day of the announcement, then quickly fell back. Last night the US market was mixed and appears to have forgotten about this already.
Having said that, TWE was a bit out of favour before the news and was closer to year-lows that highs, despite the market being at an all time highs and to my mind undervalued, hence I loaded up on the stock. Now it seems more reasonably priced and part of the bump in price might have been because it was under-appreciated. With the market at an all time high and having made a very nice profit in a very short time (I bought heavily geared warrants (TWEKCE) as well as stock), I decided to cash out 90% of my holding and await the next opportunity.
TWE Price at posting:
$11.97 Sentiment: Hold Disclosure: Not Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)