Today I attended the Renold Plc interim results presentation to analysts. There were only three of us there but nobody minded me as a small shareholder. The company has been through a period of significant change with new management, disposal of loss making businesses, relocation of significant capacity to China and Poland and other operational enhancements. Greater sales growth is now in prospect. I was expecting the market to react positively to the news that everything was on track, but instead the share price fell over 10%. The full impact of the so called PACE (Profit and Cash Enhancement) plan is yet to show in the numbers and so a great buying opportunity has presented itself.
Update Thursday 22nd November 2007: I caught the falling knife! My buy order went through at a rock bottom price today and seems to have stopped the slide. I will count my fingers again in a couple of days....http://www.renold.com/
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