It appears Mr Market likes the EML Payments Ltd (ASX: EML) share price again as it bounced up by as much as 15% today. What’s going on with the EML share price?
EML share price
Mr Market is often fickle
EML is currently addressing anti-money laundering and counter-terrorism regulation concerns raised by the Central Bank of Ireland (CBI).
When further details were released yesterday, the EML share price was almost slashed in half. And now it’s jumped back up!
And there’s been no news since yesterday.
This rollercoaster ride is often part and parcel of investing in the share market.
As my colleague, Owen Raszkiewicz highlights in his 10 rules for investing, wealth is transferred from the impatient to the patient. I think remaining patient in such circumstances is important because as we can see, Mr Market’s mood can quickly change upon no news or information.
My take on EML
As outlined in my previous article, I think it’s best to wait for more information and consider the impact of this on the fundamentals of the business.
These events are also a reminder of the value and importance of developing and monitoring an investment thesis.
Whilst most investors are prepared to outline the bull case, it’s even more important to understand what the bear case is so you know what will trigger a sell decision.
At the moment, I would develop a best-case and worst-case scenario and update this according to the future facts of EML’s brush with the CBI.
