RE:My Day Keeps getting BetterThis happened to CWB.TO just two days ago. Published okay financials, and then the market responded with a 6% price drop. It is certainly a strange market these days.
I suspect that in case of VMD, the issue is the worst because of the margins:
Income from operations - 2022 Fiscal $8,252K compared to 2021 Fiscal $11,580K.
The algorithmic quants will take that as a sign that the margins will keep decreasing in future years, and that yields to a much lower estimated valuation.
I checked Simply Wall Street website and for VMD, it suggests valuation of $2 because it does an automated future reversed FCF analysis. While analysts are showing $20 future valuation. It is all over the place and market makers probably use the automated quant as an input and lower the price target.
All of it is on paper and won't affect the future of VMD, except that next time they might be more careful about FCF.