Barwa 1st quarter 2011 results

ieadamy
By ieadamy

Excellent results from Barwa -up 160% and the share is down 3%. This does not make sense. Yes, there was management issues but thought the situation was calming down. Anyone with further insights.

By qatarisun• 2 May 2011 21:27
Rating: 2/5
qatarisun

investors are simply getting rid of Barwa shares, that's what caused drop of 3%. Also hard to believe in Barwa's 160%. With their high overemployment, slow projects development, heavy management machine, and asleep activity, hard to believe in such impressive grouth.. Most likely, the truth is somewhere in the middle, as usual.

By frenchieman• 2 May 2011 19:40
frenchieman

Maybe because of the mess with the management. If you you fire a huge chunk of your workforce, the savings is amazing. If outsiders think the cuts were logical, fat-trimming measures, the share price goes up; if investors think is was amateurish and detrimental to the future performance of the company, the share price goes down. Given that the share price is already artificially stabile due to government investment and it being a Qatari company, a 3% drop suggests that outside investors are seriously worried the company is going to take a serious hit.

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