RE: spikey 1 Jun 2015 01:15
hi. as i understand it, and i may well be misunderstanding it,
the share price had been hit with a kind of double whammy.
.....so part of it was lower cash conversion, yes, but perhaps
more damagingly the market lost some confidence that UTW
were actually reporting figures accurately ... investors do get
mildly spooked by bad results, but get much more spooked
when they begin to suspect that they don't actually have
accurate information to work out how bad they really are.
extract from the link i posted previously:
"Woodford says there has been a few research notes written about alleged bad accounting procedures by the firm that were likened to the 2014’s most besieged AIM stock Quindell.
However, Woodford said that his own firm’s research had found no irregularities in Utilitywise’s practices.
“We have done extensive due diligence on Utilitywise and we actually had an extremely good meeting with the company last week and we are completely satisfied that their accounting is entirely appropriate about what happens within the business.”
“We are very comfortable with the accounting, the cash flow and the future outlook for the company. So we are extremely relaxed. The valuation is ludicrous. It has been unfairly hit. I don’t think it was malicious in any way but it is inaccurate analysis frankly. We are very confident in the business and have used the weakness that we have seen recently to buy more shares.”"
..... but i am a relatively recent entrant to UTW,
so happy to be corrected / informed with
better information re historic issues.
as i understand it currently, woodford has
about 0.5% of his income fund invested in UTW,
decent vote of confidence for an aim stock.
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