In addition to business fundamentals, a company’s stock price often depends of investor sentiments. While in the long term fundamentals always win, the short term stock movement is often influenced by investor fear and greed. Short sellers often make a good use of it as negative headlines have disproportionate impact in a bear market and investors follow sell now verify later mentality. However, disparity between fundamentals and stock price movement doesn’t last long once reality begins to set in. What happened with Mosaic (MOS) recently is a good example of it.
Mosaic’s stock