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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
Shares in Interquest (ITQ) slipped to 32p last week although they are now 33p-34p. I swapped emails with a rather glum chairman Gary Ashworth. Of course Gary is glum, as the largest shareholder his net wealth has been materially dented.
Interims last month were clearly not good. But the shares took their punishment then. The slippage in the past couple of weeks is what happens in thinly traded small caps when you disappoint.
The shares look cheap but you can understand why - after that warning - folks are not rushing to buy. Meanwhile there will be a few panicked sellers and in a stock that has never been that liquid this causes a large fall in the share price. Gary says that fundamentally nothing has changed. Just the share price. We think he's right.
This has been a bad tip from Steve and myself but on an underlying PE basis and with some yield support we suggest being brave, and averaging down. Buy.
This article first appeared on the Nifty Fifty website which Lucian Miers runs with Tom Winnifrith & Steve Moore. To access the website ahead of the next share tip from Tom & Steve THIS FRIDAY and ahead of a new shorting idea from Lucian GO HERE
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