RNS dated the 2nd January is the start of a good year for Quindell investors.
The current share price assumes a worse case scenario and as a result does not represent true value.
The sum of the parts is greater than the whole and you would therefore expect interest in the companies assets from other businesses.
The RNS contained the following statement:
“regardless of the outcome of the discussions detailed above, the Board remains comfortable with the Group’s overall cash position”
This makes it clear that the company has not and will not run out of cash. This is an important point as detractors of the business who said the business would be bust by Christmas will state, Quindell needs to sell parts of the business to remain afloat.
Any such allegations are untrue.
The RNS also contains the following statement.
” the Group is in early discussions with a range of parties interested in exploring possible transactions with the Group relating to a number of its operating businesses.”
Why would other businesses be interested in all these parts of the business if the business is according to its detractors a fraud?
This RNS is the start of the process, returning value to Quindell’s shareholders and is a clear indication the Quindell business has a significant value.
This is definitely not a fire sale and this will be reflected in the share price movement today and in the following weeks.