Yesterday’s trading: PartyGaming woes
But the shares have returned to their well-trodden downward path, shedding a hefty 46% since hitting a three-month high of 58p in April.
Dealers were left scratching their heads as they tumbled another 3p, or 9% to 31p yesterday in heavy volumes.
Analyst James Hollins at Daniel Stewart decided the shares had fallen far enough and suspended his sell advice.
He reckons that part of the negative sentiment surrounding the stock is connected to the ’substantial remuneration’ Mitch Garber receives.
The chief executive is in line to collect free shares and bonuses worth around 17m if he just stays at the company another two years. Contrast that with the fortunes of shareholders who have seen their investment plummet from a high of 170p in 2005.
Depressingly, Hollins believes that despite the slide the shares are still looking relatively expensive.
Mortgage banks and other financials weighed on the FTSE 100 index as Northern Rock’s profits warning heightened worries over rising borrowing costs. It added to jitters over the fallout from the US sub-prime mortgage market and worries about growth across the pond.
The FTSE 100 index ended 31.7 points lower at 6527.6 but over on Wall Street the Dow Jones Industrial Average closed up 90.1 points to 13,427.7.
tumbled 113p to 834p, fell 29p to 1091p and was down 25p at 978p.
Among the second liners, lost 15p to 394p, buy-to-let specialist fell 27p to 483p while , which specialises in loans to low-income earners, was 18p lower at 381p.
Bluebay Asset Management, which has been unsettled by the fallout from the US subprime mortgage market, rallied 15p to 478p after raised its target price to 575p.
The property sector was rocked by bearish comments from builder , down 9p at 369p.
shares were down 39p at 649p, tumbled 384p to 3861p and were off 30p at 876p. Engineer fell p to 123p despite rumours that a 147p bid is coming in the next day or two.
Re-hashed talk of a 610p a share offer spurred 4p higher to 577p, while its Bradford-based rival also bucked the trend, adding 6p to 296p, amid speculation its property pile could attract activist investors looking to unlock value.
Market leader fell 3p to 422p after JP Morgan cut its rating to from neutral and its price target to 420p from 480p. The broker reckons the lack of sales momentum in the UK will weigh on the share price.
The mood was gloomy at too, down 15p to 628p, after Oriel Securities downgraded the stock to reduce from hold on the back of worries its food division has been hit by the recent wet spell.
And lost 5p at 660p on talk that had placed 9.8m shares at 665p each.
Oil services group John Wood fell 6p to 320p after a reassuring but unexciting trading-update. The rumour mill churned out a tale that the company was about to receive a bid for around 4 a share.
Casino and bingo hall operator was bolstered 4p to 180p by Deutsche Bank lifting its rating to hold from sell. While the smoking ban should have a material impact on Rank’s business, the broker reckons this is already in the price.
Companies going dragged on the market. fell 48p to 704p, shed 22p to 525p, slid 18p to 566p while was 18p lighter at 456p.
Telecom stocks were once again in favour, with up 8p at 329p and 3.8p higher at 163.8p.
Among the smaller caps, leather garment maker lost p to 0.4p after plunging to a pretax loss of 3.8m from a 1.2m profit last year.
It is all change at PR and marketing firm (up p at 12p). Chief executive Jeremy Middleton has stepped down with immediate effect and Roger Parry has been parachuted in as executive chairman.
Parry, who is currently chairman of , will be paid 225,000 and can collect a 425,000 bonus if he stays until February
2008. He could also receive up to 28m shares, representing 8.4% of the company.
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