Any reason would be complete speculation. You should just focus on the "long-term." If you are happy with the risk-return profile of your portfolio, ignore day to day fluctuations. If you think Vocus is still undervalued, buy more.
A one day break in a correlation doesn't mean the correlation doesn't exist.
There are many unsubstantiated reasons the stock could be falling. Some include:
- A ramp up of TPG telecom holdings in lead up to the reporting date;
- A lack of interest in Vocus as only Motley fool has been publishing articles and adjustment of the baseline;
- Insider information leading to a small sell-off;
- Short sellers trying to ramp the price down to get out
I think people have to keep in mind how dangerous the stock market is looking. It's become apparent shorters are coming up with big bucks in many stocks. With false optimism forcing commodity prices up (i.e. OPEC keeping to their promises, trump accelerating infrastructure and resource demands), the market is ripe for a small crash. I also think all these technology stocks like Snapchat,which people are pouring money into companies with large competition and poor revenue prospects may also increase the risk of a crash. This is not to mention we still may experience the after-math of quantitative easing after the last crash.
VOC Price at posting:
$4.25 Sentiment: Hold Disclosure: Held
