The unexpected resignation of a chief executive is rarely a positive sign for a company, but in the case of recruiter Gattaca (GATC) it was just the tip of the iceberg. Brian Wilkinson’s departure was accompanied by news that the company was revising down profit expectations by 15 per cent and would reset the dividend rate as a result.
IC TIP:
Hold
at
195p
The reaction was harsh, sending the shares down close to 14 per cent in the hours after the announcement and the markdown continued over the next two trading days. Analysts downgraded their forecasts too, with Numis now expecting EPS of 32.5p from 37.4p previously.
