NMC Health shares dived over 50% across the previous week, wiping £2.7 billion from the company’s value. Today the stock has jumped over 20%. What is causing such high levels of volatility and is it time to buy?
Given investors’ reaction to the Muddy Waters accusations, it would appear that many agreed.
The future of NMC depends largely on whether the allegations turn out to be true. If they are true, the company’s financial outlook must be reassessed by the market.
Allegations like this often stain a company and it can take a significant amount of factual evidence to boost confidence and change opinion. It is unlikely to be a quick process to get to the bottom of this which means that the share price could struggle to recover to pre allegation levels any time soon.
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