How will Quindell deliver value for its shareholders?
Firstly a quote from Robert Terry.
‘We will do everything we can to make sure loyal shareholders get the right returns….’
On the 10th November, share price value dropped by 19%. It is therefore an appropriate time to remind ourselves why Quindell are on track to deliver significant returns to shareholders and how this value will be delivered.
1. Ever improving cash flow position. This should 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:
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 his Directors are purchasing shares weekly.
Directors are with these purchases demonstrating their commitment to Quindell and also indicating they believe they are a good investment.
Value should be delivered via the share price increasing due to the success of the company. If this doesn’t happen Quindell have stated what action they will take.
RT has also stated he will take the appropriate action if value isn’t realised by early 2015. In other words we are running out of time.
One way or the other RT is going to generate returns for Quindell shareholders. If the share price continues to be manipulated, alternative measures will be taken to deliver.
The clock is ticking before an alternative route is taken to ensure value is delivered to its shareholders.