to add to this to those wondering why, even though a downgrade...

to add to this to those wondering why, even though a downgrade was partially priced in, the size was not.


from Stuff

Hamilton Hindin Greene investment adviser Mark Hampton said afternoon trading reflected investor disappointment in a2.Shares in a2 fell to $11, down 22.1 per cent on the share price before the trading halt.
The market had been expecting a profit downgrade, however, what was announced was much worse than expected, Hampton said.
“The fact that the margin is coming down as well is just not great,” Hampton said.“This is just another thing in a string of bad news for them. The high dollar, Australia and China’s political relationship hurt them and, I would say a lot of this share price fall reflects a little bit of disappointment from shareholders in the company itself.”The fact that a2 reiterated its profit guidance on November 18 left investors wondering how so much could have changed in a month, particularly as that month included Singles’ Day which was normally a big sales period, Hampton said.“At best, management were being very optimistic, at worst they were being a little naive regarding any potential bounce back.