It has been a good day for the share price today with gains of 25%+. This year the share price has increased 170%+.
It is not therefore surprising that Quindell’s detractors have been trying to hold back the share price. This is a response to a couple of the claims.
1. Gotham City Research Report
Gotham today tweeted:
“We have lowered our intrinsic value estimates for Quindell. We anticipate issuing a follow-on report in the not-too-distant future.”
This is why in my opinion this report will not be issued:
1. It is 9 months since the last report. Why would it take over 9 months to produce a follow-up report?
2. Why wasn’t a Gotham report issued in November / December when its impact would have been greater?
3. Why would Gotham warn us the report was going to be issued? They rely on the market not knowing what they are doing.
4. Why wouldn’t Gotham use their resources to write a report on another company where the returns would be greater?
In my opinion the tweet was issued to try and halt the share price rise.
2. New team not city heavyweights
The city says they are city heavyweights and the blogger states otherwise. You decide. I have after a quick Google of their names.
It is inevitable that over the next few days more mud will be thrown at Quindell in an attempt to suppress the share price..