It was Friday 9th of December at 9:45am.
I was in a good mood… made plans to meet up with a few friends after work for a burger and some drinks. Even though I was still grinding away at my dead end, high volume processing work I was pretty happy.
Whilst bopping away at my obnoxiously loud music, I get a message from my mate…
“hey i think Sirtex has a new announcement”
“Oh you mean the GS change in substantial shareholder announcement? saw it yesterday, it was nothing.” (lol)
“Na take a look”
I flick my phone to Commsec, and before I could even get through the 2nd paragraph of the trading update, I already knew I was not going to get anything done at work that day. I had previously priced future dosage sales growth in line with historical rates of around 16%, and coming from a period of strong performance, I’m sure no one really expected this.
Management guidance: fall in dosage growth from 15% to 5% compared to the previous corresponding period. Full year sales downgraded to 5%-11%. EBITDA $75M.
I put in an sell order for $24.00 which is me admitting to the fact that I will be taking a loss. By the time 10AM comes, I’m glued to my phone waiting…
For some reason nothing happens on my screen for like a few minutes after opening, but I get a message from my group:
“oh I thought those would be bot orders, guess not haha”
I frantically check again, the opening price was like $13.00 and my heart sinks. Half my portfolio value is missing.
So I thought it would be cool to get your opinions on my updated price target.
90/12/2016 close: $16.00
If Sirtex turns super saiyan: $33-$34.
See attachment for overview.