Clover: No Need To Be There

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By Rudi Filapek-Vandyck

Amidst all the excitement about pending corporate deals in Smorgon (SSX), Australian Pipeline Trust (APA), Coles (CML) and UNiTAB (UTB) one would be forgiven to overlook the fact that some companies are still issuing profit warnings.

One such company is Clover (CLV) which informed the market yesterday it’s profit for fiscal 2006 would not meet previous expectations.

One of the few who actively covers the stock, ABN Amro Morgans healthcare specialist Scott Power, instantly turned sour on the shares.

In a brief note following the disappointing company release, Power said the revised guidance was "disappointing", adding "there is no need to be there in the short term".

ABN Amro Morgans currently has a price target of $0.18 but that is likely to be pulled lower. The shares closed at $0.14 yesterday in very light volume.

The broker had expected to see a net profit of $1.1m for the year compared with management’s admission they will be lower than FY05’s $0.8m.

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