BUY WTG
by
BuyBAO
on
08 May 2014 09:44
Price at rating: 19.60, now:
SHARESMAG Quindell BUY r Investors should be confident in Quindell's ability to recover from this savage attack.r Insurance claims outsourcing business Quindell (QPP:AIM) is being attacked by vicious, cynical and opportunistic bear-raiders. In little more than a week virtually all the paper profits on our call at 21.5p (see Plays, Shares 23 Jan) have been wiped out following serious malpractice allegations by little-known US short-seller Gotham City Research. Quindell responded with a detailed and comprehensive response. We note several points. First, Gotham admits to profiting from Quindell's fall. Second, its 3p share price target implies a market cap of £175 million, effectively crediting Quindell with an enterprise value of just £35 million for a business expected to make more than £1.1 billion of sales, and £342 million of pre-tax profit (according to Canaccord forecasts) in 2014. Thirdly, the firm's respected major shareholders, including Prudential's M&G, Fidelity and Merrill Lynch, have all given complete support for its growth land grab at the expense of short term cash generation. r r Shares say : Investors should be confident in Quindell's ability to recover from this savage attack.
Score: 25.00