Ann: Market Update , page-21

26 April: "Pretty rough and extreme share action yesterday all but reversed today "

I’m with FB on this. I don’t agree with the statement either.

Between 12-18 April Coffey dropped from 42c to 34.5c.

On 18/4, I posted “My concern (based on SP drop this week) is that most companies would have a pretty good idea by now as to what their full year result is going to be. I hope that there’s not a problem on that front … and we’re starting to see a bit of news leakage from the inner sanctum”.

Unfortunately there did seem to be some leakage. By 23/4, the SP had declined to 30c, a fall of nearly 30%. And then the big drop when the announcement came out the next day (24/4) when it closed on the day’s low at 19.5c.

For Coffey shareholders, it was indeed a welcome jump back to 26.5c on the next trading day (26/4), but we’re still 12% below the close on 23/4 (at which time you would have to think quite a few people were aware of the announcement that was going to be released the next day), and 37% below where we were a couple of weeks before.

So, even with the ‘recovery’ on Friday, we’re still 37% below what had been a relatively stable share price a fortnight ago. No wonder FB is a happy man, the shorting profits must have been stupendous.