Some really great posts on this thread, especially from
@meghotcop - thanks for your very worthwhile input. Onto this:
So why is it that on the day of the announcement the SP falls to new lows, and the business lost almost one quarter of its value?If I can offer a hopefully unbiased view; what I've learned from recently following this company is this: earnings, metrics and projections might all stack up tidily and shout out a great future, but at the end of the day if the SH trust isn't there, those numbers won't count for much in the short term. Having said that, it's far too early to call the outcome here - that'll take at least several quarters to see if this acquisition really does add value - however in the interim the sentiment here is poor. FWIW I think the Halo management team may have their work cut out to prove that this acquisition will be 'the one' (verses the previous two) and it could take some time to restore faith. There was one comment when the quarterly came out that really stuck with me, as someone trying to get an even-handed bull/bear case. One poster had suggested that the accounting might have been 'dressed up' a bit given there was so much pressure to turn a profit (the comment is here for reference:
https://hotcopper.com.au/posts/59261768/single). I didn't put too much by it at the time but kept it back of mind just in case there was some merit. You can understand I was therefore skeptical in the extreme as to the timing of this latest CR. If I feel this way - as a non-holding observer - I can only imagine how the LT crowd feel - and I really sympathise.
Definitely still a company to watch from here... but that's my take on the price action, and what the next quarter or so might look like (hopefully I'm wrong!). To take a more positive view, perhaps the selling was nothing more than people looking to participate in the CR/SPP and therefore selling above that where they could - but the speed of the drop has me uncertain of that theory. On a separate note, curious to see there is a largish sell wall of 1.6m shares at 10.5c - any ideas why? I'd initially thought it was perhaps s708's who had participated in the raise and were looking to flip, but the new shares haven't even been issued yet, so I'm a bit stumped. Cheers