28.06.2008

Tanfield shares plummet

Shares in Tanfield, owner of UpRight and Snorkel, dropped 40 percent on Friday closing at 29p, down from a 12 month peak of 203p.

Tanfield blamed the sudden drop on the earlier profits warning from JLG owner Oshkosh. The company also published its annual report on Thursday which scotched rumours concerning a possible qualification.

The company will release its half year preliminary trading statement on Monday.

Vertikal Comment

Such a steep fall in Tanfield’s share price is odd given the progress the company has made over the past 12 months. Thursday’s price of 51p already included a massive discount, which allowed for slower growth.

The company will release its half year trading statement on Tuesday, could it be that those liquidating their holdings in Tanfield have insider knowledge of a poor set of numbers or some other negative announcement?

Or is the market grossly over-reacting?

Depending on how you feel, Monday morning early might be a perfect day to acquire some Tanfield and JLG stock or to sell it?"