Safestyle shares have been having a bit of a honeymoon period in the last couple of weeks. A threat has been removed from the marketplace. The type that could cause serious damage or worse.
That honeymoon period seems to have come abruptly to an end.
A quick retreat
Take a look at this chart:
That jolt upwards was a result of the removal of any SafeGlaze threat that might have remained. With that now extinguished and the main personnel now in strategic positions, investors saw a bit of light at the end of a long dark tunnel.
However, as I have mentioned in previous posts on this matter, the solving of one problem does not mean the list of problems for this company has not gone away. There remains many more to tackle, including the overall business model, reputation, profit margins, market share, sales methods and a whole lot more.
This chart is a classic case of over-buying the good news and selling the fact. People got excited when SafeGlaze was removed from the market, but got carried away. The bigger picture still tells a much more difficult longer term story and that perhaps explains the move of 11%+ to the downside on Tuesday.
Today has proved to be a reality check for the company and their share price. The woods have not yet been cleared and there is much more work to do. This story is long from being finished.
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