There's many possible reasons, some of which, might...

There's many possible reasons, some of which, might include:

• Positive news might be already priced in ... the market "knows" that it will be a good quarterly
• Macro climate (jitters on Wall Street, sector rotation, overpriced equities etc) is spooking investors
• Some sellers will be cashing in on big gains, especially those that can now take advantage of CGT discount
• Other sellers protecting smaller profits or cutting losses (these are the type that will buy back in at a higher price when overall market sentiment improves)
• Larger holder(s) exiting (although not showing up on volume)
• Larger holder(s) accumulating by selling into rallies and mopping up shares on the cheap from the nervous nellies

One could also ask: does any of this even matter? You can only know the reasons after the fact, so from an investment point of view its not particularly useful. So long as the company continues to grow and innovate, the price will look after itself.

It helps to look at the 5 year chart, as it smooths out the daily gyrations. You can see that we remain in a confirmed uptrend and that volume has dropped off over the past month (which is healthy).



I agree with @Wozar that we are currently being presented with an excellent chance to pick up shares that in a few weeks/months time will be considered cheap. Of course, there's no guarantee and for all we know the price could fall off a cliff if results disappoint.

I like to always keep cash on hand to take advantage of precisely these types of buying opportunities. Whereas others will apply alternative strategies, such as waiting for the price to advance higher or buying upon confirmation of positive results. There's many proven ways to make money in the markets so long as you follow your own rules.

Everybody has to make their own judgements based on the available info and how they calculate the reward to risk ratio.

I have a multi-year investment horizon, so have conviction that around 60c will be a fraction of the share price in five years time.