Shares in Marconi are taking another tumble as investors continue to desert the telecoms equipment maker after its profit warning and amid brokers comment that the stock could fall below £1.00 sterling.
After losing more than half its value in single session yesterday, the stock had dropped a further 11p, or 9.8 per cent, to £1.01 by 11.46 a.m. The stock was London's most active with volume of 130 million shares.
Deutsche Bank said the firm could fall as low as 76p per share unless the market gets more clarity on earnings, amid fears that more horrors lurk after this week's warning that operating profits would be halved this year.
The statement came just a few weeks after Marconi told investors it forecast growth despite an industry slowdown.
"It could have been less bloody if they had given a better insight earlier on. It would have been a more ordered downturn, whereas it just fell out of bed," said one dealer, who said the stock could fall as low as 90p.
"It probably hasn't been overdone, because they have neglected to give the full story to the market and their shareholders for a considerable time. So I don't believe this to be a knee-jerk reaction," he added.