Magix - Waiting for the magic

Wednesday, May 02 2012 by

May 02nd 2012 - Edison Investment Research today published a report on Magix entitled "Waiting For The Magic". In summary, the report says:

A slippage in the timing of product launches from Q2 to Q3, exacerbated by weak consumer confidence led to a 23% drop in revenues during H112 (ending 31 March) to €14.8m and a sharp fall in the share price. There are indications that management’s diversification strategy is working, although the launch delays mean that this is not now expected to deliver revenue growth until FY13. Magix has high levels of operational gearing and offers high-margin products, so only a small revenue increase is required for the shares to look substantially undervalued.




About Edison Investment Research

Edison Investment Research

Follow

Edison Investment Research is a leading international investment research company. It has won industry recognition, with awards both in the UK and internationally. The team of 95 includes over 60 analysts supported by a department of supervisory analysts, editors and assistants. Edison writes on more than 400 companies across every sector and works directly with corporates, fund managers, investment banks, brokers and other advisers. Edison’s research is read by institutional investors, alternative funds and wealth managers in more than 100 countries. Edison, founded in 2003, has offices in London, New York and Sydney and is authorised and regulated by the Financial Services Authority (www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584). more »