Wednesday, 27 February 2008

Logica Share Price and EPS

Readers might find the chart above of interest. Boring as I am, I've kept a record of Logica's EPS and the Share Price on the day the Full Year results were announced, ever since Martin Read was appointed CEO in 1993. Until 2002 the year end was June and the Share Price used was sometime in Sept. Since then its been a December year end with results announced in Feb. I've also taken into account the 4-for-1 bonus issue.

What is so interesting about the chart is that EPS (5.4p) is now back to where it was in 1996. Interestingly the share price then (144p) was some 40% higher than it is today. This was because the 'expectation' was for growth - particularly as the Y2K and 'excitement' were just about to hit. Logica's share price stormed ahead after that. Indeed, they hit £24 (109p today) at their height in 2000.

So if you were a long term shareholder, or even a long term backer of Martin Read, you might be feeling a bit aggrieved!

Indeed, to use a headline I have used several times before, if this is a chart of the "Martin Read Years", we wonder what the chart of the "Andy Green Years" will be? Let's hope an improvement!
Footnote(1) - I've been a Logica shareholder for most of the time shown in the chart above. At one time in 2000, my holding was worth over 20x what it is today. However I'm still showing a small gain on my original purchase price.
So, when/if I brag about my share BUYING skills at anytime, please bring me back down to earth by reminding me of my deficiencies when it comes to SELLING
Footnote(2) - To read my (ex) Ovum Holway colleague - Phil Codling - views on Logica, see Logica confirms unimpressive 2007 results.

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