close at 78p, next day open at 13p...means?

[jonboy123]

this is kinda scary.
what does it mean?

should i avoid charts like thsi?

does it mean millions of sellers sold so much over that day or two, the price just dropped so rapidly?

the day of the 13p share shows millions more trades/volumes being done,compared to the 78p days. So this clearly says sellers were dominant in the market, right?

thanks.

 

[KillPhil08]

It's gapping, look on the dow futures right now and you'll see it.

Imagine glaxo said that their vaccine for mumps actually had aids in it over the weekend.

 

[N Rothschild]

well its obviously not from tonight dildo as cash markets arnt open are they.

jonboy just google the company no doubt some major news came out forcing everyone to dump the ****

 

[jonboy123]

so potentially, all equities can drop in this manner in an instant????

this is a scary thought....becuase in this case.... it happended instantly. One day it closed high, then next day it was worthless.

company is inchcape.

 

[KillPhil08]

Generally I fill these gaps.

 

[foredog]

I think they had a rights issue, where shares are offered at a discount to current price, therefore when they go xr the price is discounted

 

[Hotch]

looks like a 9 for 1 issue. ard 4.1 bln were offered (at 6p), and the take up was 3.9 bln ish (remainder underwritten by ML, HSBC, RBS). Deadlilne was the 23rd, trading in the new shs started 24th I think.

GJ

The most likely and least hilarious cause.

 

[foredog]

so potentially, all equities can drop in this manner in an instant????

this is a scary thought....becuase in this case.... it happended instantly. One day it closed high, then next day it was worthless.

company is inchcape.

Yes. About 6-8 weeks ago Lloyds came out with a trading statement (unexpected at lunchtime on a friday!) saying that HBOS losses would be greater than expected and within about 15 mins went from 105 to 55p.

BUt on the flipside you occassionally get a bid at maybe a 50-100% premium so if you're long...happy days.