its broken trend, those who bought on trend analysis are fleeing. its now seen as a risk on sector, those previously buying thinking that the media sector would see a good few years are now fleeing.
Pricing is an interaction of marginal buyer and marginal seller. Right now too many sellers because too many sellers had a 'hypothesis' on SWM and its not playing out, hence they are exiting.
Not enough marginal buyers because: a) SWM has no historical dividend support. b) SWM has serious insider ownership with their own potential games at play. c) SWM already sucked in the 'buy on cheap fundamentals, eg PE'. These guys already have put their capital into SWM. So where is the marginal new buyer?? d) as i mentioned above, one of the 'protection' has been lost now that SWM spend its cash on acquisitions.
This is the environment boys and girls. As little tadpoles (which all of us retail investors are), we have to recognize this and play accordingly. Tadpoles are small and nimble, but if not careful, tadpoles are food for the whales.
Understand this and then invest accordingly. Hence why I am quite relaxed, I have a position, but in no rush to top up.
Hopefully market fear gives me an opportunity to top up to 2nd position at around 40c.
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