Shares in budding systems integration company Volante recovered around four percent today after falling consistently for the past month.
In early November trading, Volante shares took a nose dive moving from a relatively stable $1.38 to around $0.94 in a matter of days. The slide continued until the stock bottomed out yesterday at around $0.68 (losing investors more than half their money in less than a month).
The system integrator is in the middle of changing its business model and is trying to increase its revenue share form services away from low margin product sales. Ass part of this change, the company has had some restructuring costs, but according to today’s statement to the ASX, it sees no reason why it should be punished so harshly.
“Following Volante’s announcement on 11 November 2005, and noting the recent decrease in the price of the Company’s securities, the directors wish to advise that: they are not aware of any information or reasons that can be attributed to the recent decrease in the price of the Company’s securities; and trading results to the end of November 2005 have confirmed that the Company’s expected net profit after tax will be between $2.0 – $2.5 million for the first half, with EBITDA expected to be between $11.5 – $12.0 million, as per the Company’s announcement on 11 November 2005,” it said in a company statement.
In response, the company’s stock price recovered about four percent (as at