profit warning2 Aug 2012 17:55
This is, in fact, a perfectly 'reasonable' profit warning and within the 'normal' range, especially considering the current economic climate. Renold is a fundamentally sound and healthy company and the current headwinds experienced are to be expected. The share price reaction is too severe and Pinkers has no doubt it will recover to levels closer to 30p within a few weeks. It's just that investors are a little oversensitive right now... and who can blame them! 22p is obviously a major support level and should be monitored; if it breaks it might well go down all the way to 16p.