The following indicates why Quindell are heading for the perfect Storm and will deliver significant returns for longterm investors.
Firstly a couple of quotes from Robert Terry.
‘We will do everything we can to make sure loyal shareholders get the right returns….’
With regard to any management buyout:
‘….that would be stealing the company from shareholders’
Ingredients for the Perfect Storm
Reasons why Quindell are on track to deliver significant returns to shareholders.
1. Ever improving cash flow position. This will impact on share price.
If it doesn’t due to share price manipulation, Rob Terry has stated he will make sure loyal shareholders get the appropriate returns.
This could be by splitting the business, selling part of the business and issuing special dividend etc, etc.
2. Current market expectations do not take into account the following.
a) NIHL cases settled earlier than the anticipated 18 months. NIHL cases have been settled at higher fees than anticipated. The impact of this will not be known until Quindell have completed their review.
b) Revenue from recent contract wins not factored into KPIs. The Aviva contract for example will generate significant revenue.
3. Quindell have exceeded market expectations for the last 17 quarters. They have a history of being conservative with their forecasts.
4. Robert Terry And Directors purchase £3m + shares in last 12 months.
Directors have with these purchases demonstrated their commitment to Quindell and their belief that the shares price will head North.
It is becoming increasingly apparent that a strategy is in place to deliver exceptional returns to shareholders.
The business has stated what action they will take, if due to share price manipulation, value isn’t delivered.
RT has also stated that he will take the appropriate action if value isn’t realised by early next year. In other words we now have a timeframe for value to be returned to longterm investors.
We are heading towards the Perfect Storm, sooner rather than later the value of the company will to be reflected in the share price.