The sp had been increasing without any official news and the...

The sp had been increasing without any official news and the sharp drop is also with out news. These sp movements result from the public speculating on what the coming quarterly result will be and how much of the planned increase production capacity has been achieved.

In a theoretical perfect market with well informed public (and without sp price manipulation by big players) as the company release each announcement (sp sensitive), the sp moved up or down responding in each of the announcement in tiny spike or fall, thus reducing sp volatility. By law, a company is required to inform the public as soon as it is aware of any price sensitive information. A transparent company that updates shareholders regularly in theory reduces volatility and reduces insider knowledge volatility or sp manipulation by traders on the uninformed shareholders.

Instead we have a CEO that talked down the company sp and a few days later informed the market of increased production with the chorus chanting the mantra that talking down the company prospects will reduce share price volatitily. That is one of the most fanciful mantra just like the CEO stating Quote: We’ll be very carefully monitoring Relenza royalties each quarter and informing our shareholders about that.”
The fool was so carefully monitoring GSK’ public broadcast of the Relenza results that he reported the wrong sale results to the ASX and when correcting his mistake blamed GSK.
The best way to reduce share price volatility is to keep shareholders informed of important sp sensitive news like how the planned increase capacity is going, extension to patents, new Relenza sales especially those that had been published in news articles. An informed market is the best tool to reduce sp volatility – not a fool talking down the prospects and keeping the market in the dark and giving briefing to selected few analysts.