A week after XLMedia (XLM) announced it was likely to surpass market expectations for revenue and profit growth in 2015, the gambling-focused digital marketer launched a strategic review that could result in further acquisitions, a merger or even a sale of the business. Investors reacted to the mixed messages by sending the shares down 5 per cent.
IC TIP:
Hold
XLMedia's directors have tasked broker Canaccord Genuity with carrying out the "wide-ranging" review, which is intended to "maximise value for shareholders". Given the group's strong performance over the past 18 months and robust growth prospects, the timing and apparent motivation seem odd.
