Investing, it’s never easy, is it? CNKS (Cenkos Securities) is down nearly 20% over the last week, because it is nomad to the disgraced insurance/computer services company QPP (Quindell). Investors now have to work out if and how much the reputational damage CNKS has suffered.
Things looked so different back in March, when the company reported its finals. Revenues were up 19%, operating profit (from contuing operations) were up 62%, and the dividend was up 113%. In their outlook statement, the directors said: “We have made a very encouraging start to the new year with 2014 revenues to date being materially ahead of the same period in 2013 and the current pipeline is strong.”
Just when everybody thinks they have things figured out, someone comes along and changes the game.
RSI is 36%, so if you are thinking of having a flutter, you should probably wait until it gets into proper oversold territory.
I have no idea how this will all pan out.