Share price dropped 7.3% on Monday despite positive trading update

Quindell’s share price has fallen 7.3% despite announcing a positive third quarter trading update on Monday.

Shares closed at 143p on Monday after Quindell announced a 115% increase in revenues and better than expected cash flows.

Shares initially rose on Monday, with shares opening at 161p, 4.4% higher than the closing price of 154p on Friday last week.

Quindell’s shares peaked at 242p in June this year, but have since dropped 41% following continued fall-out from a Gotham City research note in which Quindell succeeded in a libel case, and the restructuring of a telematics deal with the RAC.

But a research note from stockbroker Canaccord Genuity has reaffirmed its “Buy” recommendation for Quindell shares, writing that a strong performance from its legal services division and handling of noise induced hearing lose claims could generate strong earnings in 2015.