KSD - My last disclosures since I sold at $1.40 and $1.30 were...

KSD - My last disclosures since I sold at $1.40 and $1.30 were that I no longer held. I had a conviction position in EML and had total trust in Tom Cregan. When he sold 20% of his holding at $2.00 I had complete confidence they would meet or beat guidance. The Chairman stated they were tracking ahead of budget to calm the market down after the sell down. The issue is Tom is EML, he is the key guy, he is the tireless promoter of the company, engaging the market. After the sell down, the tracking ahead of budget guidance followed by the downgrade it doesn't matter anymore what Tom says whereas before it did. All that matters now is the numbers. All the speculation of what EML could be has gone. The accompanying issue is some fundie's just want out now so the stock is now testing a level of where liquidity is. New buyers are either not stepping up yet and they are not new buyers. Pie Funds, the ardent long term supporter and large holder of EML, have been humiliated. Where to from here ? The best place to look is at stocks that have had a downgrade after directors have sold. A good example is Freedom Insurance. The stock halved which looks like EML is going to. FY 19 at EPS of 5/6 cents......at 15 ......75 - 90 cents valuation. FY 20 at 8 cents on 15 times $1.40. The market will reward EML with SP appreciation on results now , not speculation.
Plus you have to contend with all the " I just want my money back" holders on the way back up. Curious to see if PIE doubles down or exits altogether. Tom's got a lot of work to do now. He's a very smart guy and has built a company from a $30M market cap but made a tragic mistake promoting, trading the stock, then downgrading. It's a good company but not a great company..