Sound Global's chart looks bad and this is probably an understatement.
The black candle formed today is probably the ugliest I have seen in a long time. Gapping down and breaking through all the MAs, it was a headlong plunge.
Could we see share price sinking even lower from here? It looks like it could happen with the MACD diving steeply into negative territory and if it should happen, the next level of support is at 49c.
Fundamentally, I am concerned about the higher finance costs but they are not so destructive as to sink the company. It is still a very profitable company.
My estimate is that EPS could reduce some 20 to 25% this year, everything else remaining equal. If Mr. Market is unhappy with this, he could send share price back to test the low of May 2012 at 45c a share. With the estimated reduced EPS in mind, ......