hi h-man, This selling looks like a big holder/s taking something off the table. They are probably long time holders with a very low cost base and have decided in their wisdom that this company going forward doesn't have the same risk vs reward than other opportunities. I would say that is based on the recent communications from the company. It is what it is. When a big holder is desperately selling, it causes more desperation in shorter term holders, as well as shorters who then work the technicals.
Obviously there is a buyer to match every seller, but the buyers are overwhelmed atm resulting in many sitting on the sidelines waiting for a slow down in the velocity of drop and volume. It will spring back pretty quick when this happens, but it is a buy/hold here for anyone with a 3 month horizon, imo.
As to the communication from company which has appeared to have caused this rot, it seems funds/instos heard loudly the numerous clear statements from the company about prioritizing revenue growth ahead of margins. Without any numbers from the company, many have chosen to assume the worst until the company speaks up or we get the 4M or H1 report.
Will Jayne and other management sacrifice their share sales this year in order to reduce this SP damage? That would be a good test of their leadership and the directors influence in the company, imo. Good leadership needs to make sacrifices for the common good sometimes. If I was on that BoD, I would ban share sales this half given senior managers/directors are the only ones that have access to forecasts under this new 'growth at all costs' model.
A2M Price at posting:
$12.35 Sentiment: Buy Disclosure: Held
(20min delay)