Why is the share price moving up on no news?
Quindell with regard to price sensitive information has unfortunately, in the past, leaked like a sieve.
It would therefore be logical to assume the same is happening again. We know that the following information is due for release in the near future.
1. New Chairman announcement
Market expecting announcement Q1. With headhunters and potentially the new chairman’s company having to be informed it is highly likely information has leaked.
2. End of year trading statement.
The new Quindell board have demonstrated by their actions they act professionally. They would have advised by now if the end of year statement differs significantly to information already provided to the market.
3. PwC review.
Having been part of company that had a PwC review I know that the general content of the report is known well before the publication of the report.
4. Hearing loss revenue review
This has been going on for months. The results will be known by the Quindell board and any consultants involved in the review.
5. Organisations / businesses interested in parts of the business.
We know this is happening and organisations will be involved in due diligence, contract negotiations, etc, etc.
Speculating, could the disposal of a division result in a split off into a separate company with Quindell maintaining a minority stake? This would result in shareholders having a stake in two business.
The added benefit being closing of shorts as shares recalled, resulting in increase in share price.
It would not be a surprise that with numerous consultants, businesses and organisations involved in the above that information has already leaked.
It would appear from the way the market is reacting that if any news has leaked it is good news. Is the share price movement due to information being known about one of the above points?
What would happen if the share price movement reflected all five?