For me the reaction to the downgrade was understandable. What irritated me was that one should have expected the results when one looks at the lack of confidence in the business market. Business is working lean, considering that australia is on a fence. However, at the end of the day, SFW has not dropped in value too. The shares are at a higher price than when the original non binding bid was announced. if they are still interested, then WHG should do well. The head guy(Lombard) has a large holding in WHG and will not wish to cash them in on a smaller valuation. the bots were working today. But the shares for sale at 90cts also kept popping up.... and capping any rise in price. From a technical point of view....the company shares never got lower than 75 cts even at there low during the GFC. So I would think that is their bottom. The company has been dedicated to cutting costs and that is a good thing. The company is in a business where they can't actually lose money unless they are really stupid. ... and cutting costs cannot be a stupid thing. sorting out rents and such can lower costs. But the cost for people to send in their tax forms for auditing never drops. Which means that their income can only drop in these areas if businesses go bankrupt. This could happen in the future...but that is very pessimistic.
WHG Price at posting:
89.5¢ Sentiment: Hold Disclosure: Held
