These look cheap, but I can well understand why they are languishing on such a low rating. First of all, they hack off the institutions by axeing the dividend, which would have cost less than £1m, at a time when they are boasting a huge cash pile. Then to cap it all, they have two share placings (at 80p+ and 40p+) to fund aquisitions. Those who took up the placing are nursing big losses. Those who didn't are suffering dilution. At least a divi would have given the share price some support. As it is the company is trumpeting an anticipated 70% increase in operating profit for the current year but the bottom line is, earnings per share will probably be flat! No wonder the institutions have been getting rid.
This sounds to me like sod the shareholders, we run the business for our benefit not theirs. Trouble is sooner or later the chickens come home to roost!
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