Huntley has downgraded the mid term high for this stock from...

Huntley has downgraded the mid term high for this stock from over $1 to 80cents.

Its currently trading at 56-57c.

The following are my comments:

We are running into tax loss selling time and the stock has dipped from its highs of 80cents.

The underwriter is (probably) stuck with a lot of stock that will have to be offloaded onto the market.

Management has foreshadowed a small loss for the financial year. I've never seen a small loss. If management is going to have a loss they make it a "good" one so that there will be no surprises next year. Hence I think the loss will be significant with restatement of provisions and conservative estimates of useful lives of assets.

If they stuff up once more management will not be forgiven.

This is a stock to avoid for 3 months.