As a footnote to the post on 29 May, it is worth noting that on the day of the profit warning, Liontrust (IDOX's largest shareholder) were buyers of 1m shares at around 36p. This I would imagine would be after presentations or discussions with Liontrust by the management, although no new price sensitive information would be given, they would have had an opportunity to drill down into the company's sales funnel.
They now own just over 12% and were previously buyers at around this price back in November and had purchased a further 6m in the intervening period. I believe it is owned within the Smaller Companies fund managed by Anthony Cross. An extract from the 2012 Manager's report describing the type of companies they invest in:
The Fund’s investment approach is to invest exclusively in companies demonstrating two criteria which we believe are the key to what makes some companies successful and others less so. These are: the strength, sustainability and exploitation of a company’s Economic Advantage (its intangible strengths), and how key employees (who create this Economic Advantage) are motivated and retained, preferably through direct ownership of the company’s equity. The Fund will only invest in those smaller companies that can demonstrate that they have met these two criteria.
It is a little too early to tell, but 36p does seem to be establishing an area of support. If the problems outlined in the trading are as they described down to delays, then the SP may well push on up from this level during the coming months.
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