why after an announcment does the sp drop?, page-10

Totally reasonable for it to be a surprise for shareholders.

Cash flows from operations was -1.5m, but this was driven by changes in working capital, so there was no reason to expect a $1.5m accounting loss.

Investor presentation in July:
- Achieved operating profit in the month of June 2009
- Profitable outlook

Other announcements:
- break even at $6m
- expect revenue of $8m
- margins ~25%

So, worst case I think it would be reasonable for shareholders to expect a break even result in the first half. Losing $1.5 is a massive difference in a small company.

Now they are forecasting a loss for the year.

Shareholders have every right to be concerned given the ambiguity of various announcements and actual financial results delivered.