kingswood, its not so much about what the company is worth, its about what the market thinks it is. Remember the market is a bunch of traders with a herd mentality, poked and prodded by big money.
Stock movements aren't about company fundamentals, they're about crowd sentiment.
Atm sentiment with AYR is pretty crook, with a bunch of holders who bought on the news and are now in the red. Did big money want it that way? Absolutely, because they then get to soak up all those shares at a lower cost as the little guys in the crowd capitulate. And didn't we see some capitulation today.
Sharetrading is a ruthless and unfair business, its not for the faint hearted, and "big money" doesn't care if us little guys take heavy losses, as thats how they make their profits.
AYR will turn around, but I'd be surprised if it happens quickly and I doubt we've seen a bottom yet. There may be a rush for the door next week as people offload to register the tax loss, at which point I'll be looking for a substantial average-down buy due to being caught at a higher level.
AYR Price at posting:
4.1¢ Sentiment: Buy Disclosure: Held
