Feeds

Action suspends shares – again

Statement expected soon from mail order giant

  • alert
  • submit to reddit

Build a business case: developing custom apps

Action Computer Supplies has temporarily suspended its share trading pending an announcement. The mail order PC company made the statement to the stock exchange at 12:15pm today. No explanation was given regarding the forthcoming announcement. A representative of the Middlesex-based company was unable to say when further details would be available. Action's shares have plunged around 50 per cent from their July high when prices topped £3. Its shares were today suspended at 177.5 pence. The company is in a closed period until 21 October when its results for the year ended 31 August are expected to be announced. CSL analyst Clive Longbottom said: "Judging by the share price, it's probably going to be negative rather than positive news." "Action is pretty much on its own in the mail order market, but is getting nibbled at by the office supplies companies selling PCs." "Action aims at the SMB market and is likely to get hit by Y2K. Also, SMBs tend not to be buying networks from Action, but increasingly from places like PC World," he said. The Action model is getting very weak." Action has been moving more towards being a Web-based company. There were several redundancies this summer during a re-jig towards online sales. "Insight already has the Web model in the US. But it bought Action for its mail order business," said Longbottom. The last time Action suspended its shares was in July, when it announced a revision to the proposed take-over by US giant Insight Enterprises. This took the deal from 0.16 cent to 0.12 per cent of an Insight share for every Action share. At the time, the move was said to be due to a "material adverse change" in Action's trading conditions, and put a lower value of around £93 million on the company. ®

Boost IT visibility and business value

More from The Register

next story
Microsoft exits climate denier lobby group
ALEC will have to do without Redmond, it seems
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.