trading halt question, page-6

Sharkies...

You miss the point.

The rise in share price, as shown by the charts prior to this trading halt, suggests the news should be positive.

If the charts had shown a declining price, then one would be inclined to suspect bad news was due.

You are correct however, in that what happens next will depend on the detail of the release.

I see 3 scenarios...

1. The news is much better than the market expected...price should rise after some short term volatility as it hasn't been factored into the price yet.

2. The news is good, but pretty much what the market expected...price may flatten or fall slightly after some short term volatility because the news was already factored in.

3. The news is less than expected...price will fall dramatically.

It's all pretty simple really...you just need to know what the market is expecting?

Cheers!