A technical opportunity for those brave, or foolish, enough to take it.
CPP has suspended trading earlier this year on account of an FSA investigation into its practises. It has relisted today. Predictably, the share price has plummeted: 28%. Might be an opportunity for a short term trade (on the long side) to capitalise on everyone heading for the exit.
Here’s the IMS:
CPPGroup plc ("CPP" or the "Group") announced on 20 February 2012 that the Company’s shares had been suspended from trading on the London Stock Exchange as, following receipt of new information from the FSA in relation to its investigation into certain issues surrounding the sale of the Group’s Card Protection and Identity Protection products in the UK, CPP was no longer able to assess accurately its financial position.
Further to that announcement, CPP stated on 24 February that it had reached agreement with the FSA in relation to the scope of actions necessary to address certain failings in CPP’s sales processes. Since such date, the Group has been in detailed discussions with its financing banks, many of its business partners as well as in continuing dialogue with the FSA. Whilst such discussions are continuing, having also announced today the Group’s preliminary results for the year ending 31 December 2011, the Group is now in a position to assess its financial position and consequently, the Board is pleased to announce that the suspension of the Group’s shares has been lifted with immediate effect. CPP’s preliminary results announcement sets out in detail the current financial position of the Group, and also provides analysts and investors with further details on the status of the FSA investigation and the Board’s current views on the outlook for the company and the risks which may impact future operational and financial performance.
The statement of CPP’s preliminary results can be found on the Company’s website at www.cppgroup.com/regulatory-announcements.
Bid: 74.00p Ask: 74.75p Spread 1.01% as at 11:58am (delayed) according to LSE.
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