A couple of months ago I got a bit of a flaming from certain Bulletin Board Morons for suggesting that shares in Coms (COMS) were overpriced at 6.1p. It was not like I was saying that I had shagged their wife’s but the reaction was as if I had made that claim. I said – at the time – I’d buy the shares at c4p. After a profits warning on Friday the shares ae 4.33p. Would I buy?
I will cover this again in my video postcard later today if I can manage to transmit it from the Greek Mountain. Had Coms shares drifted gently down to 4p as a result of market ennui and a general realisation by all bar the most ardent of Bulletin Board Morons that the stock was overvalued I think I would have been tempted. But Coms shares have fallen because of a profits warning proceeded by an embarrassing restatement of accounts. As such the fundamentals have changed and so one must reassess the investment case and also ones entry point.
Some of what came out on Friday I knew was on the way. The hapless FD
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