BUD 0.00% 4.3¢ buddy technologies ltd

Ann: Digicel Arrangement Update and Revised Guidance, page-80

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  1. 580 Posts.
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    Ok here's an example. (I'm totally making this up). Head of sales, Tim, travels down to Jamaica. They have a meeting to discuss current and future sales. Digicel says they can not meet their projections. Tim then says, ok we are going to pull your exclusivity. That is a development which could impact the share price. At that EXACT moment, a trading halt is required because information has been given to someone (digicel reps), but not everyone else. If the digicel folks were BUD holders, or had friends that hold, they could effectively sell before the rest of the market knows. So BUD asks for a trading halt to write up the paperwork and prepare a response. If it takes longer than two days they go into suspension. That's how it is suppose to work, but there is always grey area and so not every company follows the same steps. But with the ASX watching BUD I don't blame them for being cautious and going into a TH/suspension for anything they think is material but has not been finalized or announced.

    I don't get why this is a big deal. I see it as a good thing because people can not panic sell while BUD knows full well there is more news coming shortly. Would you be happier if you could sell on this news today, and then find out tomorrow there was an acquisition? This suspension is for the benefit of the us, the shareholders.
 
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