The simple - they didn't hit the profit they projected during the last qrt due to varying - hopefully one-off - reasons. The market dont like it when you fail to meet expectations and dont paint an ultra rosey picture moving forward.
(Also, making an official announcement to the market regarding some gossip that was blurted out on HC by a disgruntled ex-employee was an amateurish move)
The not so simple - is there something deeper going on? Did they pay too much for the acquisition? Will it cost too much to explore overseas? Is the increase in R&D expenditure a scope into their product's needing to be more dynamic?
Even with these issues, I still think it's a solid company with good fundamentals. I will be holding long-term 5+ years (Unless something drastic happens) and even bought more recently at these cheaper prices. PLUS im a part of the DRP, so I will also increase my holdings over the next few years via this avenue.
LBL Price at posting:
59.5¢ Sentiment: Buy Disclosure: Held
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