It could get dragged down with the index and under normal circumstances ($7 per share) it would - $2.64 a share is not normal.
However, couple of things: no news means good news, that should keep sellers on edge leading up to AGM - next couple of days are crucial I beleive, the company cannot go into AGM and drop a bombshell - if bad news is to be aired it will announced prior on Monday or Tuesday.
Secondly, it is clearly going to exit ASX100 on 18 Dec ( average market cap outweighing any liquidity advantage) but due to its low market cap index selling is probably virtually done on SGH. The need to hold SGH as part of ASX100 will be miniscule when consider its current weighting in that index.
I have a feeling it will buck the trend next week.
If liquidating other holdings due to market risk, money has to be parked somewhere. Possibly traders will see this as a good short term risk to see out the aftermath of terrorism threat and US poor lead-in.
Strong potential catalyst in the AGM, traders that don't believe in the long story may see short term bounce potential and look to ride out the current environment on a beaten up but not profit downgraded stock. SGH is a coiled spring sentiment can easily be influenced by a short timeframe buyer raising demand - it could trigger those latent buyers into action. If it does look out for the post AGM pullback.
For us looking to hold for years, a few months is meaningless anyway. May be an opportunity to trade a little of overall position if that way inclined.
I predict an early morning Monday dip then climb all the way to a Friday jump. Finish the week on $3.21.
p.s next week I'd like to share some work done on valuations and seek feedback. It looks quite exciting.
SGH Price at posting:
$2.64 Sentiment: Buy Disclosure: Held
