GNG – Geong International

Ah, GNG, a beloved stock to watch – in the train wreck kind of way.

Spotted this just now: it was down 33% on Friday 20-Apr-2012. It released a trading statement then:

The Company, as in previous years, had originally anticipated strong trading during the fourth quarter based on an expectation of receiving high margin performance fee revenues (where the operating costs have already been absorbed against the quarterly fixed revenues) on certain SaaS contracts. Unfortunately these performance fees have been at a lower level than anticipated as the impact of the slowing economic growth in China has caused many of the KPI’s set by the Company’s clients proving to be too optimistic with the result that the level of performance fees is greatly reduced. … the Directors now expect to report revenue materially below that recorded last year … will incur a non-recurring charge … aborted acquisition

Strong sell, and then some.

Bizzarely, they chose to release the trading statement at 10.10am. An RNS of such quality is usually reserved for after-trading hours on a Friday.

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About mcturra2000

Computer programmer living in Scotland.
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