Contractor and engineer United Group (UGL) soared 10.2% up to $12 on Tuesday, after hitting a 52-week low yesterday.
By 11.18AM AEST shares rebounded and were trading 9.3% up at $11.90.
The volume was 6.6 times average trading of 768,604.
It was a different story yesterday when the shares plunged $3.60 to $11.89, despite a solid outlook reported within its half-year results.
The RBA’s gloom and doom yesterday overshadowed United’s 40% rise in interim earnings.
It’s hard to work out exactly what it was that the punters didn’t like:
The first-half net profit rose 45.7% to $51.48 million, underlying EBIT rose to $87.3 million up 40% on last year’s result and United even reaffirmed its annual guidance to achieve 15% – 20% growth in underlying profit.
It seems good earnings results are no longer a prerequisite for shareholder satisfaction.
Today’s recovery is far off from the high of $21.87 it hit back in November. It is trading at a price to earnings ration (P/E) of around 17.6.
