ZOO Digital disappoints: we warned you….
Shares in this provider of localisation and digital distribution services for the global entertainment industry, have plunged following a disappointing trading update. We warned previously that the valuation had become detached from reality and the latest update would appear to support our view.
Our main gripe with the valuation of ZOO Digital (AIM:ZOO), at the then share price of 124p (currently 62p), was that it was valued like a super growth, high margin software business, whereas progress was actually more pedestrian and margins are never likely to be that high.
You can read our previous Blog here.
The latest update has stated that revenues for the second half of the financial year will now be comparable to those in the first…
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