The implications on management credibility are tied to this announcement, if jp Morgan were given early warning by management to get out before the profit downgrade, management credibility is shot and no one should touch this stock.
However if they were buying, I would assume that they were doing so based upon the belief that the price was good value. As others have stated the majority of the downgrade in production was already communicated to the market, hence it would be logical to conclude that jp Morgan would still be buying at this cheaper price.
In summary, at this stage; if jp Morgan were buying then I would think the market has over reacted and it would be wise to take advantage of this buying opportunity.
However if jp Morgan were selling it may be prudent to sell as management seem corrupt.
My opinion only.
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