With all due respect, how can you state that you are not sure, but you would be careful. Isn't that a contracdiction in terms, because if you do not know, and you do not have any idea, then how do you know whether you should be careful?
There was nothing negative in their reply. What probably spooked the market somewhat was the ambiguos nature of the reply.
Otherwise I can see no other viable reason for the stock to fall to these levels.
All we know is there were some unsubstantiated rumours, going around prior to the fall that another production downgrade was imminent. In reply to an ASX query, the company immediately released a production update. They have not given a production downgrade, so whats the problem?
They gave production guidance for the December quarter, but since they have never given such a guidance before, we can't really say there is a shortfall.
They also said that some maintenance difficulties they have experienced , would not affect ‘performance’
So if performance is OK, and production is OK, and they still have $100M in there coffers after the special Dividend payout, then whats the problem? Does it justify such a fall in price. I would submit not.
MRE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
