Not a good week for Numis, any news on why the drop is happening?Dave
A primary external driver of growth for Numis is the level of financial activity amoung the medium sized public companys that make up the Numis client base.This year the level of IPO, merger and acquisition, and fund raising activity has been high, and Numis has profited.This activity has been very dependent on the feel-good factor engendered by the rising stock market. The market surmises that if stocks start to go down, managements will cease to have that feel good factor and will cease to consider fund raising for growth, aquisitions and the like. The market, probably correctly, predicts that Numis turnover and profit would suffer in such an environment.Whether Numis gets back on an upward path depends on whether the market decides that the recent marketwide falls are natural profit taking and the upward trend will recommence shortly, or that the recent falls herald the top of the market for the next year or so.I am hopeful that this is a temporary halt for natural profit taking. Merrill Lynch continue to predict 11,300 as the high for the DOW by the end of the year, and if that happens the London market will be encouraged higher again.There are obviously also internal reasons for the success of this company, and I hope these will continue to work in our favour.
Well the upward trend in the market recommenced this week but our Numis has failed to respond.The year end has already passed (end of Sept) and the final results are scheduled to be released early December.Could this be affecting the share price? Is the market feeling that the results may not be as good as once hoped? Bountiefool
© Copyright 1998-2013, The Motley Fool Limited. All rights reserved. This material is for personal use only.The Motley Fool, Fool, and the "Fool" logo are registered trademarks of The Motley Fool, Inc.Place of Reg: England & Wales. Company Reg No: 3736872. VAT Reg No: 945 6990 68. Registered Office: 5th Floor, 60 Charlotte Street London W1T 2NU.
Page load time and server: