@Dandaman21,The short answer is that I hoped market participants...

@Dandaman21,

The short answer is that I hoped market participants would be rational and that the market would be efficient (EMH), with respect to this announcement. But, the reality is that the market was neither rational nor efficient. I am not that surprised. Markets are often inefficient in the short term, but almost always efficient in the long term.

Why was this the case? There are many factors at play and I will try to explain them in a separate post at another time, but in short, it comes down to i) the quality of the investor register (primarily uninformed retail investors who are new to the market), ii) sentiment towards the company, iii) historical trading patterns of the stock (which dictates average entry prices of shareholders) and iv) the way the news was released (during the day in a 'plain' fashion, rather prior to market open with some more 'hurrah).

The silver lining is that 5% of the register turned over on the day of the announcement. A further 2% has turned over since. The register is improving and the average entry price of shareholders as a whole is decreasing. This will be helpful in allowing the stock to run, in time. The business continues to perform. The share price is not performing... yet.

T.E.P.