Buy on rumour sell on results… stop that and reverse it. Have the results leaked out? I was going to buy in but a company that makes a fund raising to move to new offices stopped me. Might be worth a small gamble now.
I can not see the reason for the price drop, the companies loan book must now stand at over £20 million, they have cash at over £5 million with the fund raising, they have cash coming in every month from their loan portfolio, and there is a demand for loans, so it’s not as if they have cash flow problems, with only 36 million shares in issue, it would only need one or two big investors to sell up and the price falls, which it has done,
Maybe the trading update, due any day now will tell us more,
They have already indicated that eps will be flat this year as they take on more staff, move etc and of course there will be more shares to service. Y/E 2016 will see the benefits of the current investment program but I suspect that lending will get tougher as interest rates rise and banks become better lenders to SMEs.