I hope you’re right Susie, it is a statistical fact though that managers tend to release good news prematurely and tend to hold off negative news until absolutely necessary. So for Dirk to say margins will affect the 4C, and not say anything about volumes for me there are only 2 options:
-receipts will be lower than we expected
-Dirk is a statistical anomaly and is withholding good news and has a strange, overly precautions communication style, or just forgot to mention volumes? (Ie mistake)
I don’t think he’s been there long enough for us to know his communication style, we’ll find out with the numbers. But the sell off is probably because the market thinks there a higher chance for the latter.
As I said before, the last time he mentioned volumes was when he said January had one of the largest months ever of specialty chemical sales. So I’ll hold, but it’s intriguing isn’t it...
In any case, hard to be optimistic about this 4C, but if Dirk proves to be a statistical anomaly then we’ll quickly head back up.
Krusty, if good news come, the market will price it accordingly. I wouldn’t worry about resistance on the way up too much.
AJX Price at posting:
26.0¢ Sentiment: Hold Disclosure: Held
(20min delay)