Have you considered that it has been in downtrend for about 7 weeks, that it has announced a downgrade with comments such as:
Originally Posted by Tezzad
However, the Group’s profits are expected to be impacted by the general slowdown in activity in the Australian mining sector that has occurred from September 2012 onwards, and which has not recovered as previously expected.
Weakness in prices of coal, iron ore and more recently gold – leading to a slowdown in other services provided by Ausdrill in Australia;
This has resulted in surplus mining equipment in the sector, with trading conditions in the equipment rental market remaining below expected levels. We expect these trading conditions to persist in the near term. Equipment hire revenue accounted for approximately 8% of Ausdrill’s revenue in the half year to December 2012;
Weakness in prices of coal, iron ore and more recently gold – leading to a slowdown in other services provided by Ausdrill in Australia
In addition, Ausdrill has been developing two new businesses in the mineral assaying and coal seam gas drilling sectors which have been impacted as described above. Ausdrill continues to expense all development costs associated with those businesses.
These factors combined will drive the share price of any company down. They are essentially saying their business is in downturn so you should expect people to continue to exit in favour of something else with a more positive potential. The market sentiment to ASL continues to be negative.
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