Originally Posted by
Balance
Sentiment will be negative for a while yet - especially when one considers:
1. Very disappointed and probably pissed-off Australian institutions who took most of the $50m of shares placed last year at $3.70 per share. One Ausbil has already sold out completely and taken their loss. Others could follow.
2. Still a number of shareholders in there with big enough gains to consider taking their gains (albeit reduced) and moving on - especially if the likelihood is that the stock is not going to perform for a while.
To me, it's a question of how cheap it becomes relative to fundamental value (historical PER of 12X and EBITDA multiple of 8.1X) and when 1 & 2 finish their selling.
Watch for the selling to finish and uptrend to emerge.