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I noticed it was oversold too, but the whole market was oversold given the declines from Jan / Feb.
As we officially enter a recession around Q4 this will only hurt the retail sector. Plus potential headwinds of rising prices with core agricultural products hitting the poorest hardest. I failed to see these two factors in your analysis when thinking about headwinds.
Carrington - the posters, myself included, predicting 400p haven't left. Having 1 good day doesn't compensate those who bought in at 2800.
The fundamentals haven't changed. No profit, slow up take in technology, deteriorating retail environment, increasing interest rates, high inflation.
It doesn't surprise me to see investors surprised in this drop. There was too much hysteria in the court date and its always predictable that some would sell after.
Investors don't need to worry about the price, they should be focussed on what they think other investors will do instead, in economics this is called the beauty contest.
The market cap before and after the RI should be the same theoretically as what value are you adding by selling shares? The value in the RI in this case is the capital that receive for returning to business minus the dilution they are going to absorb.
This will spike early morning, but fall by noon, maybe to 7p. Everyone will cry corruption as they bought more on the spike wishing it'll go to the moon.
Then we will all have to wait a little longer as the fundamentals improve like lending again. Fundamentals are key, a court case is a first step but probably already priced in.