Good news coming??, page-7

Tuesday was an interesting day for BKN. Fell almost 6% on the open then trekked up 14% from that low (yes, 14% -- a few happy day traders out there, no doubt). I suspect shorters piled in on the bell, then got caught when sentiment turned and had to cover.

Why would BKN rise on such a poor result?
1. The results were mostly in line with earlier guidance (no more surprises, even if they were fairly ugly).
2. BKN kept margins up (a major worry with the industry right now).
3. BKN refers to green shoots of better times ahead (market loves to hear that, particularly with a chart showing some evidence of that improvement).
4. BKN is cutting costs nicely and seems to have more cost control benefits to come.
5. BKN still made a profit in spite of lower revenue and significant one-off costs.
6. BKN's dividend was aligned with guidance (26 cps for FY14, so 11 cps for HY14).
7. ASX euphoria on Tuesday (market up 1.3%) may have helped.