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Friday, 9 December 2016

Sirtex crashes by 41pc

Follow the smart money

Just a matter of days after an upbeat presentation, Sirtex Medical (ASX: SRX) admitted to shareholders that its first half profits would be a lot lower, crashing the stock price by 41 per cent to under $16 (well down from the 52-week high of above $41). 

Broker Wilson HTM had previously issued a price target of $46.50, breathlessly reported as 'evidence' of great value.

And the stocks was supposed to be even better value when it fell below $35.

Today it opened at $13 before touching $12.20 at its lowest. 

Maybe investors and speculators should have taken note when the CEO himself dumped $2 million of stock only in November.

In September the Vita Group Limited (ASX: VTG) Chief Executive sold 10 million of her shares and today the share price is $2.73, having been slashed in half since August. 

Both just examples of lucky timing, of course. 

Follow the smart money.