The past few days have been a rollercoaster ride for Sepura (SEPU) investors. Shares in the maker of digital radios and communications systems plunged 47 per cent on 27 April after management warned payment delays and acquisition-related investments had left it short on cash, at risk of breaching banking covenants and possibly in need of a £50m equity raise.
IC TIP:
Hold
at
73p
However, the shares rebounded 60 per cent over the next three trading days as institutional investors spotted a bargain. The day after the bad news, Danske Bank raised its stake in Sepura by more than a fifth to about 4.1 per cent, while Henderson Global Investors increased its holding by a tenth to about 11 per cent.
