I agree - many retail holders panicked but there is also the...

I agree - many retail holders panicked but there is also the institutional component.


This is a highly hypethical scenario, however ...

If a major holder sold down their holdings from $ 4.70 to $ 3.50 on Thursday ... let's say half a million shares

and then on Friday purchased back the same amount between $ 3 and $ 3.40

They have the same amount of shares at a lower entry price.

Toss in a few shorters.

The cascading / snowballing effect of a downward price is in motion.

And then over the next 3 - 4 months they gradually increase their holdings by 1 or 2 % (up to $ 4)

Then a Private Equity consortium (which may or may not include the same institutions) make a bid for the whole company at $ 5.

Sell off the Australian assets, go into management and sales force with a chainsaw, reducing costs whilst building up the compamy sales by improved efficiencies.

Then after 3 years list it on the American exchange .... after all the vast majority of business is done in the USA.

Being listed on the ASX is no longer logical (?)

As I said purely hypothetical and a cynical view of how markets often operate.