Cupid – 39p

22 March 2013 – comment re: press speculation

The company has responded to press accusations that some of its employees have sent messages to members to encourage them to use its services.  An independent audit is underway. Clearly this is very unwelcome news and the shares have slumped.  The market capitalisation has slipped to £32m, little more than twice the level of net cash held at the year end.  In an industry which has seen corporate activity in the recent past the shares are now wide open to a bid but there is likely to be a high level of volatility in the short term, meaning the shares are only for the very brave.  SPECULATIVE BUY.

 

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