Good Afternoon,
Hard to write about falling markets….a story of a weak opening , rising optimism markets making it into positive territory only to give it all away in the afternoon. European markets -1.85% ,
Its all about the Greeks…and the spread of contagion worries…across all markets.
RBS was the bright spot today with teir clear message that the worst is behind them. Ulster Bank even took a writeback of provisions against Irish Mortgages which was surprising. RBS was up 6% today.
ICON reported today , a mixed bag really. The Q4 numbers a tad better than expected , the Book to Bill ratio at 1.0x compares not favourably with Covance and Parexel which had 1.4x and 1.3x so below peers, Margin guidance lower due to management investing in their business results in guidance for earnings being presented with a nice wide spread , the top of which is below the current consensus figure. This was sufficient to trigger a -6% sell off of ICON. If the market can be really convinced that the investment which will drive the margin decline is really about future growth the stock should really be bought but there is a nagging doubt that the investment is in someway connected to the FDA letter and their response to it. Whatever the reason , the market is taking the simple view that regardless of the revenue guidance , earnings guidance is below expectations and this is pushing the stock lower/
Have a good evening
Liam
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Liam Boggan
Merrion Stockbrokers
Tel.: 353-1-2404171
Mob:353-87-2313505
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