No huge surprises
Two trading updates I have been waiting for finally arrived – Calgro M3* and Santova*. The former is expecting headline earnings per share (HEPS) to increase by 16.69% to 36.69% and the latter’s normalised HEPS by 33% to 38%. Both pretty much in line with what I was expecting, but a number of people asked me why the stocks didn’t surge. The reality is that if your update or results are pretty much what the market is expecting, then everything carries on as normal. For a stock to surge you need to exceed expectations. So both these companies are doing as expected with no fireworks, just good results for good operations. This supports recent gains by the shares and will support future gains.