Shares up despite the selling29 Nov 2006 09:44
Now here's an odd one. The results out yesterday were very good, sales up 91% on continuing operations, big contract with BAA, huge cash surplus following sale of part holding in Symphony plus the prospect of a 3-4p special dividend (around 30% return on current SP possible).
Share price rose yesterday and up a tad again this morning on moderate buying, despite the sale at close yesterday of 10m shares (over £1.1m worth), along with a few other hefty sales over the past couple of days.
Now either the market makers are short of stock, which doesn't seem likely as it's generally half a million or less shares traded daily, or something else is going on, perhaps linked to the suggested special dividend. Interesting to note that volume was 160K shares on Monday but over 17m shares yesterday.
With the strong performance of the company and the prospect of a big cash payout, these may well have further to go, despite the ending of takeover talks.