Research note dubs insurance outsourcer’s revenue streams as ‘difficult to fathom’
Apparent uncertainty about Quindell’s future performance has almost erased the share price gains the insurance outsourcer made earlier in the week.
After a positive trading update issued on Monday, in which Quindell reported a 193% increase in profit for the first half of 2014 and a 117% jump in revenue, the outsourcer’s share price surged by 30% to close at 235.5p from its previous level of 181p.
However, the share price has since slumped by 16%, and closed trading on Wednesday at 197.5p.
Part of the reason could be a research note issued by stockbroker Canaccord Genuity, which described Quindell’s revenue streams as “difficult to fathom”.
Quindell’s share price took a beating in April after little-known research firm Gotham City issued a scathing analysis of the company.
Quindell dubbed Gotham’s research “defamatory” and Quindell founder and chairman Rob Terry has vowed to take legal action against the firm.