While the NZX as a whole has been very weak on low holiday volume today, the SKC share price was down 9c to finish on its days low of NZ$ 4.33 on 3 million plus shares, excellent turnover for this stock on any day.
This 5 day chart from Yahoo tells the grim story and is clearly an indicator of something material at play.
The clear winner is that nobody is going to buy the casino company. The market knows that the prospect of this has been tenuous at best anyway, however insiders might know this as a certainty and are dumping holdings.
The other possibility is that a sale has been made of their cinema division and the price is low or bids are low, or management haven't found a buyer and are left with a small white elephant.
Another dreary thought is that half year profit, to be announced around the 20th of February 2008, is going to be lower than forecast, first half 2008 ended 31 December 2007. The market would have to know if profit is going to be materially lower though.
Either way insiders are selling down and bad news looks to be on the cards.
Blackjack anyone?
Disclosure: I own SKC shares
Share Investor articles on Sky City:
New Broom at Sky City set to sweep
Sky City Management: Blind, deaf and numb
Sky City sale could be off
Opposition to takeover
Premium for control
Sky City receives takeover bid
Sky City Casino Full Year Profit to June 30 2007
Setting the record straight
Sky City CEO resigns
Sky City Casino: Underperforming
Sky City Casino 2007 HY Profit(analysis)
Sky City Casino 2007 HY Profit
C Share Investor 2007,2008
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