Cupid – 69p

25 March 2013 – further comment re: press speculation and trading update.

The company has made a further, more detailed response to allegations made in the press.  Cupid has strongly denied any wrongdoing.  An announcement was clearly required but some of the points addressed concern some misleading elements including suggestions that the company generates profits from telephone lines used to cancel subscriptions, which appears to be completely untrue.  The company has clearly been subject to a severe bear attack and although there may be some problems to iron out these do not seem to be anywhere as bad as suggested in some quarters.

Revenues in the year to date are up 20% on last year and the company is bullish about future prospects.  The results of the independent audit is expected by the end of the second quarter and this should support what the company has already stated.  The image of the company has been tarnished by the recent mudslinging and this may cause a drag on the recovery but we believe there will be a steep rise from the current level.  SPECULATIVE BUY.

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