Sunday, 17 August 2008

Autonomy and the FTSE100

I see that Autonomy is tipped to rejoin the FTSE100 at the quarterly review this week. (See FT 16th Aug 08 – Autonomy poised to rejoin FTSE100) A quick search of HotViews will show that not only have I written many pieces about Mike Lynch and Autonomy but I am somewhat of a fan of both. Mike Lynch is a supporter of the Prince’s Trust, so we have met often. Also I think that Autonomy is a fine example of the kind of software company the UK is capable of producing – but does so too rarely.

Much of the media speculation about Autonomy now centres around whether they can sustain their FTSE100 position. The ‘problem’ is that Autonomy is exactly right for today’s difficult positions. It’s products help financial institutions meet compliance and disclosure. Their products are tailor-made for searching out tell-tale signs in emails or whatever which might identify a potential terrorist. All this means that not only has Autonomy done well but its shares are highly rated. A slight future wobble might well cause a crash.

Just like Capita, my views about the company are one thing. Its share price is quite another. Both great companies with great potential. But I think I must leave the share tipping to others!

Footnote - I see I got quoted in Sarah Arnott's article on Autonomy in today's Independent. To read Click here.

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