AEM share price blew up in pieces
Lifetime Membership What an explosive free fall! AEM share price (SGX: AWX) plunged by nearly 15% within two days following the release of the full-year financial result for FY2022 on 24 February 2023. The trigger for the sell-offs was not attributed to the financial result, which was stellar by the way. Instead, investors were spooked by the revenue forecast for FY2023.
After achieving a record revenue of $870.5 million for FY2022, the management guided revenue of just $500 million for FY2023 “that may be revised as second half visibility becomes clearer”. The market wasted no time punishing AEM share price (SGX: AWX), sending the counter straight to the bottom.
Short-selling volume surged to a high of 2.8 million on 27 February and 1.67 million on 28 February. The daily short-selling volume on AEM was roughly about 200,000. So the recent spike in short-selling volume represented about 10-fold increase, leading to the short-term volatility in AEM share price (SGX: AWX).
In this blog, I have always maintained that on its day, AEM share price (SGX: AWX) can be unbeatable. Conversely, when the tide goes against AEM share price, the counter can spiral out of control. In view of this, this counter is really not for the faint-hearted.Read more