They're in a bit of a no win situation. Funds were big buyers of MCU a few months ago between $1.10-$1.20, now a few of those funds have new 'managers' and believe that companies like MCU have a low earnings per share growth out look over the next few months. Possibly a fund has sold it down over the last few days, found the trigger point for the buyback and sold into it. There are distinct patterns to the lots sold, for example there were three lots of 44744 shares sold at 70c one minute apart and three lots of 55256 also sold one minute apart, may be Tricoms margin book being sold down??
Also, if they make $100mill over the next six months the share price may hardly move as everyone will be saying "yeah but the economies slowing, they'll be less advertising". True, but there will be less advertising on the more expensive media like radio and TV.
The share price could be falling due to short sellers, margin calls (quit possible) and panicing investors, or they maybe going broke, but I doubt it.
Regards.
MCU Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
