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. To be frank, this is not first meltdown of AEM share price in the past six months. In October 2022, AEM share price had suffered a devastating meltdown of 25% within two weeks following reports that Intel is going to lay off workers amid steep decline for its core businesses – PC and Data Center.
Previously, I wrote in this blog that I was 200% convinced that AEM share price would rise from the ashes to hit another new high. Given the current slump in the semiconductor industry, my conviction still remains but recovery for AEM share price is unlikely to arrive in 2023. In this article, I will share my view on the outlook for AEM share price (SGX: AWX) in 2023.Note that this is an opinion article and not meant to be a financial advice. Please do your due diligence or engage financial advisors before investing in the stock market. I am vested in this counter, so my views on AEM share price (SGX: AWX) may be biased.
AEM share price suffered brutal wallop
To be frank, its not common for a stock to suffer such a catastrophic meltdown like AEM share price following the release of a solid financial result. The thing about AEM is that as a growth stock, investors will always be forward-looking, and most of them tend to place a premium on its growth potential. This means that AEM share price will [This is a premium article. The rest of the content is blocked and can be accessible by SG Wealth Builder Members only. To read the full content, please sign up as member.]
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