If an announcement details trading "in line with expectations", yet sends shares up more than 10 per cent, it is clear the market did not believe previous management assertions.
IC TIP:
Buy
at
49.5p
Any investor nerves surrounding Action Hotels (AHCG) were calmed by 18 per cent growth in operating profit, and a 54 per cent hike in operational rooms in 2015. The portfolio manager’s focus on business and inter-regional travellers also means it has not suffered due to recent declining rates of international leisure tourism.
Investec Securities expects adjusted pre-tax profit of $1.5m (£1.04m) and earnings per share of 1.7¢ for the 2015 calendar year.
