MKM group......large director buying.

So, let me just get this right.

The company swings from a £0.5m loss to just over £0.25m profit in the comparable half year.

However, they lose a contract in the second half and so expectations for the full year are lowered.

So a gloomy scenario would perhaps mean full year earnings of £400,000 from an expected £560,000.

The current SP is 8.75p and if they achieve £400,000 in earnings then the historic p/e (fully diluted) will be just under 11 (full year diluted earnings of 0.8p).

They have £1.8m cash and state the following "Nevertheless, we expect to see the benefit of our recent investment in a strengthened MKM Concepts sales team and the encouraging prospect pipeline, reflected in our order book for the next
financial year."

Might I suggest that Mr. Market has overreacted today?

Just my opinion.

Cheers.
Michael.