Sometimes the market is right. We thought we'd spotted a valuation anomaly in
Not only that, but the company is struggling to find a bank willing to refinance the debt held against some of its UK care homes, which expires in September. Finance must be found before any further dividends are paid. The fund manager has been sacked, but will serve a notice period of 24 months. The shares are down 31 per cent on this news, which came out of the blue in a very grim update.
PSPI's double-digit dividend yield is now meaningless, undermining the reason we recommended buying the company. Sell.
Last IC view: Buy, 65p, 3 October 2011