Several articles have appeared in the last few days indicating Quindell is undervalued. These articles have contained many facts.
SELECTION of ARTICLES
The Masked AIM Trader article – looks at dividends, price to sales ratio, price to book ratio, PEG ratio and PE ratio.
Conclusion: The share price is staggeringly undervalued
Cenkos note – provides information supporting Quindell’s growth predictions for the NIHL market. Cenkos expect an initial rerate of share price to 500p.
QPPSAG article – article highlighting 2015 cash flow supports a re- rating.
Quindell RNS – RNS states positive progress with regard to all KPIs.
What are the implications of the content of these articles and the RNS if hold a short position in Quindell stock?
1. Would be concerned about the content of the Q3 update. For example what would happen if Frankfurt listing muted?
2. What would happen regarding upward pressure on sp if series of new contracts announced? Highly likely as QPP no longer announce every time a new contract awarded.
3. What would happen if market expectations exceeded? Highly likely as RNS states all KPIs on track. Last 16 quarters market expectations and targets have always been exceeded.
4. What would happen if interim dividend announced?
5. What would happen if Q3 update comes out on 3rd Oct? Could happen as RNS states on or before 15th October.
What are the implications of these articles and the RNS for longterm share holders?
1. Confirmation that sp in medium to longterm is going one way.
Believe the share price will rise at the latest in Q1 2015.
It has been very noticeable in the last few days that very few anti Quindell articles have been published as more and more factual information has become available.