I think HSO will drop lower - the new CEO has no health experience, but from his experience at Telstra, he will know to do some hollow logging - dump all the bad information, order write downs and so on near the start of his tenure - make it look like he came into a sinking ship and saved it to get more options at better strike prices.
Maybe I'm cynical, but this is my personal opinion of how the big-boys roll.
Anyway, HSO is on my watch list for long-term buy and hold, when it's cheaper - say around $1.50-1.75.
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