Solid State (AIM:SOLI) broker note highlights the over reaction?
A broker note on Solid State has issued a supportive commentary following the recent steep sell-off in the Group’s share price. While the ‘not so solid’ trading update that we commented on was very disappointing, the sell-off does seem to imply an overly pessimistic picture.
Broker Cantor Fitzgerald points out that c.40% fall in the share price since the trading update suggests that almost no sales will be achieved from the all-important Ministry of Justice (‘MoJ’) contract. The broker considers this outcome as extremely unlikely (as we also do) and sees the current level as a potentially very attractive entry point. Considering the large amount of money that has already been invested in this by the MoJ and others this…
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