Quob Park Estates have issued a note indicating what they believe are the prospects for the Quindell business.
In summary when you remove the emotive words the note criticises the actions of the Quindell board and states the share price is undervalued and an appropriate share value would be 1.72p.
When you take into account the capital return, due later this year, we know the current share price position has significant support. The risk reward ratio for investors is therefore on the side of investors.
Based on the current share price, according to Quob Park Estates the share price is undervalued. The current share price level therefore represents an opportunity for savvy investors.
Looking at Quob Park Estates own investment criteria, indicates that in the unlikely event the share price dipped to 1.15p this would be the trigger for Quob to be able to invest in Quindell as they would be able to achieve their targeted 50% return.
We know Quindell have a legal obligation to release financial information by the end of June. You have to question the motive / reason for QUOB to release their note just prior to the release of this information.
The Quindell June announcement will provide concrete information on the prospects of the business going forward.