Possibility of £1 per share or less.26 Sep 2019 16:14
Some thoughts from Interactive Investor.
Falling faster than Boris Johnson's credibility, Metro Bank (LSE:MTRO) could not be ignored. A bond sale, coming in the same year they announce an 'accounting issue', failed to attract sufficient buyers and the initiative was cancelled.
Their already spectacularly bad share price suffered - spectacularly!
Usually with this sort of thing, when a price experiences a massive 36% reversal, we look hard to try an identify a logical bounce point.
After all, it's often quite possible to snag a 15% rebound, even if any bounce is deemed as to be of the "dead cat" variety.
Instead, Metro presents us with quite a major issue, due to its proximity to the "dead parrot" side of trading.
The company's share price movements, since their fanfare listing in 2016, proved to be utterly dreadful. At time of writing, it's trading around the 175p level with the potential of weakness below this level driving the price further down to 103p.
At 103p, we would hope for a bounce, potentially a fairly useful one but the danger comes if 103p is broken on any initial downward surge.
Our secondary is at 76p and this is a level we cannot calculate below. Obviously, we can but all the answers are prefaced with minus signs.
Before any bounce from the current could be taken seriously, the share almost needs double in value as only above 315p dare we start to suspect the reversal has been a dreadful mistake and things are going to be okay for the future.
When we review how the price was managed on the 24th September, even above 222p is supposed to bring 238p which, if bettered, gives a very slight hope bottom is already in. This being the case, our secondary calculates at an unlikely 338p.
We suspect this shall be worth watching, if it approaches the 76p level.
Source: Trends and Targets Past performance is not a guide to future performance
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