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Canaccord slashes Quindell target price by 70%, cuts EPS forecasts – but says BUY in 54 page note

By Tom Winnifrith | Tuesday 15 July 2014

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.

What happened to Kevin Ashton the Canaccord analyst who refused to publish a buy note on Quindell (QPP)? He was put on gardening leave. A new gopher is in place and he has resumed coverage with a buy stance (quelle surprise as Canaccord is joint broker) and 354p target.  That is a 70% cut in target price. Earnings forecasts for 2014 and 2015. It would be fair to say the Mr Ashton would have regarded such a target price as wildly optimistic. Perhaps that is why Canaccord suspended him.

And new analyst Arun George serves up a caveat or two. Try this one from page 7 of 54:

There are clear risks for a company growing as rapidly as Quindell. We note short and longer term regulatory risks. Also, despite a history of cash collection for Quindell and its peers, past collection is no guide to future collection. There is the risk that Quindell either has or will overpay for acquisitions. There may be further repercussions from the adverse press than we anticipate. The company’s net cash position could dwindle significantly this year due to strong growth, though the Board is confident that is there is no need to raise further funds.

At the request of Canaccord, this link has been removed. We say request we mean that we received an intimidating lawyers letter. Heck if we published shite like this we'd want to keep it under wraps too.

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  1. That’s seems unbelievably draconian, putting someone on gardening leave because they won’t put out a note saying buy.

    Very odd indeed and surely Canaccord would be accused of trying to manipulate the market were this true?

    If what you say is true where’s your proof?

  2. You didn’t mention their explanation of the PT investment?

  3. Fear not Bally – Canaccord is talking such utter cock that it merits a piece on its own


  4. Bally

    It merited an article on its own which is now live


  5. Tom,

    You’ve still not answered my questions, where’s your proof Cannacord put the analyst on gardening leave because he refused to issue a “Buy” on Quindell and, if they were putting pressure on him, wouldn’t that be akin to market manipulation?

  6. AKCSL

    As a journalist I do not reveal sources. However were canaccord to sue me for libel it knows who my first & only witness would be and that I would win. I am sure you can guess who

    Frankly I’d love canaccord to sue me on this one :)


  7. As a “journalist” I thought you’d be looking for at least two sources to confirm before you start pushing a story like this, or does that not apply on a website blog?

  8. AKCSL

    Journalist = someone paid to write = ME. No “” marks needed.

    Yes one tries to double source but if 1 source is gold you go with it.

    Would be delighted to see Canaccord in court over this. If there is a God they will send a lawyers letter…

    “website blog” – you really are a tosser aren’t you. This website gets more traffic than, say, the fiancial pages of the Indy. But you are think newspapers are the be all and end all. wake up pal we are in 2014…

    In conclusion

    a) would love canaccord ( who refused to deny the ashton story) to sue me as I’d win and they know it

    b) I make money writing for a profitable website which ever more readers use. I am a journalist much though you cannot accept that the world has moved in from the typewriter era.


  9. Thanks Tom,

    When you resort to personal insults, you’ve clearly lost the argument.




    noun: blog; plural noun: blogs


    a personal website or web page on which an individual records opinions, links to other sites, etc. on a regular basis.

  10. AKCSL

    Ok so Shareprophets is clearly a financial website. not a blog. And an ever more popular one…bet that really pisses you off.

    And I am still, after almost 25 years, still a journalist.

    And you are still clearly a tosser.

    Best wishes


  11. Tom,

    Sorry you were so offended by what is, in reality, a question of semantics.

    I called your website a blog and rather than correcting me you’re throwing personal insults.

    That’s fine, I’m a big boy, and again, I’m sorry if you were offended.

    Personally I see nothing wrong with the word blog or a blogger, it’s new media and we’re creating new words.

    I’ll freely admit that in the early days blogs were nothing much more than personal diaries but things have moved on.

    I’m sure Malala Yousafzai wouldn’t count herself as a journalist, but a blogger but, due to unfortunate circumstances, she has gone on to change the world for the better and maybe that’s what professional blogging can be. It’s about educating people and so does it matter whether you’re a journalist or a professional blogger?

    However, since you clearly find these new media terms offensive I’ll refrain from using them on your website.


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