What should you do about profit warnings?

I found an interesting article on Eurosharelab, exploring the performance of companies that issue profit warnings:

In the study they looked at what happened before and after 455 profit warnings issued by UK companies between 12 August 1997 and 31 December 1999. What they found was on the day the profit warning was announced the share price underperformed the market by an average of 16,6%. However what happened over the next 6 months is that share price continued to drift lower, on average performing 4% worse than the market.

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About mcturra2000

Computer programmer living in Scotland.
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