At the speculative end of the market (such that we are in) I think that the SP responds moreso to expectations and potential, rather than news and fundamentals.
MRF was sitting low before this rally based on traders having low expectations or lack of patience to wait for fundamentals to change. This recent news sparked interest in the potential of the company as well as the fundamentals dictating a far higher SP than it was.
With BBR you can see a SP climb before the news as speculators expectations of the news raises SP. Once news comes out the results can already be priced into the SP and thus traders sell it down. the results can be not as good as the traders expected and also the rice will fall, even though the results can be excellent, the results didn't meet expectations.
SP at this end of market is all about expectations and if they are met.
Hope that helps
Regards,
MRF Price at posting:
9.1¢ Sentiment: Hold Disclosure: Not Held
