You really do need nerves of steel to cope with the markets this year. Only two weeks ago I wrote Volatility. At that point the FTSE UK SCS Index was down 7.5% on the month. Just two weeks on and yet another recovery is taking place. The FTSE UK SCS Index ended the month down ‘just’ 2.95%. Indeed all the indices we track had recovered to the extent that the 1 or 2% declines look nothing exceptional. Indeed the FTSE Mobile Telecomm Index was up 1.7%.
I reported before that even the Governor of the Bank of England had said “I don’t know what will happen tomorrow. Let alone next year”. The one thing I think I am certain of is that this ‘volatility’ will continue. Hang on for the most almighty roller coaster ride of all time. Whether the roller-coaster crashes or we all get back to the station in one piece is, I’m sorry to say, beyond even me!
Other things are beyond me too. I’ve been an investor in Blinkx since their IPO in May 2007 at 45p. After sinking to 11p, they had then become one of the best performers in the ‘Holway Portfolio’ – reaching a high of 156p at the end of Oct 11. Then, in early Nov., Blinkx bought Prime Visibility Group (See Blinkx expands again), did a placing to raise some funds and, a few days later, came out with some pretty good H1 results (See Blinkx still soaring) Well, 63% revenue growth was pretty good in our books. But, since then the shares have been in free fall – down 50% to 75p in the month. Maybe this is one occasion when I’d genuinely like one of our readers to tell me why?
Sticking with the notable fallers this month, K3 fell 27%. As mid-market hosting is pretty hot nowadays, as we expected this has not gone unnoticed. See our post earlier today Claessen looks to K3 for hosting panacea. Claessen is a non-exec who has been building his stake and a bid is ‘rumoured’. SThree fell 15% - also against the backdrop of some good results. See SThree thriving in international business. Logica also fell 15% - See Logica UK shows as group margins slip. But, at least that was easy to understand.
Another decline that was ‘easy to explain’ was CSC - down 22%. See CSC’s Quarter Horribilus.
At the other end of the scale, in the UK Lombard Risk Management rose 20% on some great H1 results and an even better outlook statement. See Lombard wins on risk management. Anite was up 19%, again on good H1 results. See Anite soaring in wireless thermals. Digital Barriers was up 18% - also on good H1 and a ‘change of tone’ on outlook. See Digital breaks down international barriers.
In the market as a whole, we have had ‘Diversity of Performance’ as a theme for years. It clearly applies in stock market performance too. Expect more of the same.