Very short RNS providing limited information but gives investors confidence in the future share price direction:
1) Q3 update due on or before 15th October is significant for following reasons:
a) Last year update was on the 21st October. Issuing news earlier will inform and steady the market.
b) On or before 15th comment. This will create uncertainty with those trading rather than investing in QPP and
potentially result in more share price stability.
2) Continued positive progress being made by group on all key performance indicators. This statement tells us now without saying it that business on target to meet 2014 expectations.
In my opinion Quindell are indicating that for the 17th consecutive time they are going to be delivering above market expectations.
Cenkos comments on RNS
Cenkos expect update to indicate the following:
1) Confirmation of full year earning expectations.
2) Positive operating cashflow in Q3 and on target for c£30m inflow in Q4.
3) Update on settling initial NIHL cases (i.e evidence that revenue predictions are realistic).
4) Update on Telematics business growth in North America.
This again is significant as Cenkos have more knowledge of the Quindell business than private investors.
Cenkos believe the Q3 results will support an initial re-rating back to 500p (5x FY15e). The word initial indicating that 500p is the first step on the sp moving North.
The RNS has resulted in share holders being provided with a wealth of information about how well the business is doing.
It was interesting that Cenkos issued their update note so quickly after the release of the RNS, thereby supporting Quindell.