Originally Posted by
Silverlight
Craigs call for a sell was at $2.60 with a target price of $2.29, and this price would reflect all uncertainty. We hit $2.29 yesterday, so according to Craigs all uncertainty is built into the share price now, in theory they will move to a hold at some point, but brokers usually release reports every 2 to 3 months, so they will say hold in 3 months time.
Once things move to being more certain (could be 2 weeks, could be 2 years) people will pile back into the stock, because, oh yeah, Chorus is still making over 40 cents per year, and paying out 25 cents of it in dividends, confirming dividends does wonders for sentiment, and the move back up may happen way before 2 years, I will be out circa $3.50 either way.
Markets move on sentiment, and a couple of times a year share prices reflect the underlying business value, the rest of the time stocks are undervalued or overvalued, reflecting participants optimism or pessimism.