Company Profit Warnings

company profit warnings: But the strength of the pound, increased competition and pressure on prices are taking an inevitable toll, manifesting itself in a string of company profit warnings, the longest quoted display for three years, according to The Independent. There are bound to be further warnings as the year progresses, which can only increase investor nervousness and With more than half the year behind us I am beginning to wonder whether shares will even manage to achieve a new record during the remainder of 2014. On a number of occasions Footsie has threatened to top its earlier peak of 6,950 only to tumble and lose momentum. It is, as I write, around 6,790 and once again could be in sight of exceeding its previous high, achieved at the turn of the century during the madcap internet boom. Shares under such limitations are unlikely to soar unless, of course, there is a proliferation of generous takeover activity. Although mergers and acquisitions seem to be occurring with renewed frequency it could require a veritable deluge of glamour bids to nullify the caution created by profit warnings. And, to pile on the uncertainty, the stock market legend is that any dramatic upsurge in deals very often signals the end of anything approaching a bull run. It seems investors have become more alarmed by downgrades than they were earlier this year, with accountancy firm EY reporting an average share price fall on alerts in the second quarter of 15.9 per cent against 11.8 per cent in the opening three months. (news.financializer.com). As reported in the news.