On 14th July Quindell (QPP) issued a trading statement. Its interims are on 21 August. And so today it issues, er um yet another trading statement. Why? Because its shares are in free fall. The statement implies that all is well and the shares have clawed back some of their losses but it simply fails to deal with the bear case. My stance is still sell with a 1p target. Here is why you should view this as a selling opportunity.
The statement says that in July targets for cash conversion, EPS, EBITDA were met and “operating cash flow” turned positive in July meaning net funds increased It reaffirms it is on target to meet forecasts but says that “Certain contracts being restructured to ensure the optimum return on cash resources but both profit and cash guidance are not dependent on any upside from these initiatives.”
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