Crikey. What a day.
ALU (Alumasc) dives 18.7% today to 137p after issuing a trading statement:
> Alumasc has so far experienced a slower than expected third quarter > performance, both in terms of revenue and order intake…. In view of > all the above, the Board’s latest forecasts are that group revenues > for the year ending 30 June 2018 will be 4-5% below previous > expectations, with a consequential reduction in previously expected > underlying profit before tax of around 15%.
I actually bailed out of these in Feb at 157p after it issued some poor results. I seemed to have timed it expertly to sell at the bottom. I kicked myself as the shares recovered quickly thereafter. In retrospect, I needn’t have been so hard on myself.
It turned out that the market’s ugly reaction to the results issued in February was a sign of things to come. In general, I don’t like it when the market doesn’t like the results, and I think it’s generally a good idea to follow the market lead. it’s not foolproof – there are plenty of exceptions – but I think that, on balance, it’s a good rule to follow.
I originally bought them at the beginning of 2016 at 192p.
137p
Mark Carter's blog 