kate bates
- 18 Oct 2007 07:35
- 10 of 50
CITE could be a flyer today, forced seller saw a plunge yesterday but they started recovering quickly and finished 14-15p. Panmure has a price of 40p on the stock or 3 times current value!! More below:
Citel was also a notable faller, off 22-1/2 pence at 14-1/2 after the group said it is unlikely to meet full year market forecasts, prompting Panmure Gordon to lower its target price on the stock to 40 pence from 56 pence, while keeping its 'hold' rating on the internet-telephony provider.
In a trading update published today, Citel said its full year results warning was prompted by the difficulty in predicting the timing of benefits of its selling efforts.
Panmure Gordon noted that while traction has been demonstrated with Citel's Portico Telephone VoIP Adapter product in the first half, revenue came in behind its expectations
"a sudden plunge in the shares of telephony tiddler Citel had dealers perplexed. The shares which had fallen 3 pence earlier in the day following a trading statement suddenly fell 75% before bargain hunters moved in. Panmure Gordon has a fair value price of 40 pence on the stock against a current price of just 14 1/2 pence and maintains its 'hold' recommendation".