Oversold15 Oct 2013 10:41
I still believe that this company has legs. It's a poor update in many ways, but the market has developed a habit of over-reacting to profit warnings when the fundamentals are still sound, or at least there is a clear path through the downturn. The management have been very sensible here, invested heavily in the technology / sales infrastructure which will see improved results throughout 2014. They forecast this dip early in the year, but reading the releases from that time, there was hope rather than any real expectation that they would meet the targets for 2013, so this is really just confirming that. We're now sitting at less than half where we've been in the last twelve months, but we're still in profit which is a much better place to be than many companies at the moment.
Good opportunity whilst those around you are losing their heads.
GL
Happy