Why Did ASX:SKS Fall On Great Results? Let’s have a look at what I think may be the reason.
This is the 5 minute chart for SKS Technologies yesterday:
Prior to that the shares were up on what appeared to be a very strong result.
Strong growth, recent contract wins, profitability, and even a dividend highlight the positive outlook for the company.
It seems the share price decline coincided with the company’s earnings call at 10:30 am. Around 10:45 am, the CEO mentioned receiving interest from brokers about conducting a capital raise. It appears that some investors, who may have missed earlier developments, now want to buy in at a discount. Unfortunately, the CEO’s consideration of these options has likely prompted some shareholders to sell.
On a positive note, the stock recovered some of the day’s losses, perhaps as more investors understood the reason for the initial sell-off.
Overall, the company’s fundamentals remain strong, but the market has been unsettled by the potential for a capital raise.
Disclaimer: This information is provided purely for educational purposes. It takes no account of an individual’s personal financial circumstances and hence can in no way constitute financial advice. The above data may be subject to errors or inconsistencies for which the author takes no liability. It is imperative that all investors do their own research or if they need advice, seek it from a qualified financial adviser.
Why Did ASX:SKS Fall On Great Results?