Stock Doctor has removed IMD from its 'Star Stock' status as the company is unlikely to make an 8% gain in earnings per share. They expect that it will be difficult for IMD to achieve stated level of earnings and revenue guidance for FY13.
They go on to say the following (which is slightly contradictory to their response)...
"Despite the clear negatives impacting IMD, there has been an active response from the business. Mr. Evans mentioned that redundancies and a keen focus on cost control has been implemented at the business, and as such some of the downside will be curtailed."
So I guess this is why the yo-yo has been bouncing less and less in recent times. Personally, I'm not too concerned and will accumulate on weakness. Stock Doctor's closing valuation of IMD is $2.10, still well above its actual SP.
:-)
IMD Price at posting:
$1.37 Sentiment: LT Buy Disclosure: Held
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