Yesterday I tipped Sepura as a speculative buy here, that being despite a turbulent year where it managed to destroy 95% of shareholder value. Those brave investors though who agreed with my view yesterday and bought in could have already turned around a 10% gain. I am always nervous though about these more riskier trades, but I was very relieved this afternoon to see Henderson notifying Sepura that they had increased their stake from 15.89% to 18.37%. Does this helps to derisk the trade towards my target of 20p?
Sepura, a ‘global leader in the design, manufacture and supply of digital radio products, systems and applications developed specifically for business and mission critical communications’ is down almost 95% from the end of March 2016. Today’s market capitalisation is £50m at 14p per share. This is an almighty value destruction, this article looks at whether there is still value in Sepura at this price. So should you be bottom fishing or steering well clear?