Should retrace quickly4 Feb 2015 08:08
Given that volume has been low, the reaction has been overdone. We have only had one trading day this year with volume over 750k shares which is low. The IIs are embedded and supportive and all the news has been positive for the past 18 months. The purchases of PPS and Publicasity at the tail end of 2014 has allowed integration into HQ from the very start of our 2015 year. To recap, the October trading update was very positive; add in the acquisitions (bringing a pro-for a £1.25m annual profit into 2015)and the outlook looks very strong. The 2014 results should be extremely encouraging, but it is the transformed Porta moving into 2015 that will be the catalyst that attracts big investors. David openly indicated that this would be the case and the more integrated the acquisitions, the better the guidance for the coming year. I have no doubt that the BoD are working on a concerted PR programme to highlight Porta as the bigger picture is rapidly taking shape. Sanlam, having replaced Singer N1, will also be working on its maiden broker notes. It is invariably frustrating waiting for news, but very rewarding when that news is both meaningful and appropriate. We have a competent and seasoned management in Porta who are working hard to build an even stronger team and I am sure patience will be rewarded IMO.