Quindell loses last weeks support

The controversial Quindell (£QPP) has faded below 167p, a level it had held all last week, and stands at 164.5p at the time of writing. There is no support at this level, and given the volatility of the instrument, I would be surprised if it did not fade to at least 161p (well 160.99p actually), the low of August 14th, if not further to 158.81p, the spike-down price on Sep 2nd.

QPP H1 Loss of 167p support

I already told you on my last post that I have a large buy order at 160.5p, and the chance of it filling are now improving. I may now split the order, half to buy at 161p and the other half at 159p, as there seem to be two clear support points. I shall set a stop of 156p, just below the Aug 22 opening spike low, where, by definition, I don't think the price will go. So you see I am bullish for a small gain.

Long-term investors probably don't care about a few pence here and there, and are following the line taken by The Motley Fool, that the share has a P/E of 3, which is a tiny fraction of the P/E average for it's sector (be that insurance, electronics, or services), and the right price is considerably north of the ATH of 590p (which would still only be a P/E of 7).

However, the market feels there is something not right with the company, and paying attention to the share price movements at this depressed level, particularly whether it closes any lower that 153p (the recent nadir of Aug 2), gives long-term investors a heads-up to bail out, should these strange allegations be proven.

By the way, for the first time today, I have started to follow the increasingly common convention of prefixing UK stocks with a £ sign, rather than a $ sign and the letter L at the end, so it's £QPP instead of $QPP.L. I'll still use the $ sign for the $FTSE and $DAX. Not sure about the £AIM100?