Baltimore battered again

By THIS IS MONEY
Updated:

 

Baltimore Technology, the Irish-based internet security firm, saw its shares suffer once again on Wednesday as investors bailed out of the FTSE 100 newcomer to reverse recent stellar price gains.

Shares in Baltimore, which joined the UK's blue chip index on Monday having vaulted to 70th place in the league of London-listed stocks on March 7, slipped 10.2% or £9.23 to £81.43 by 1426.

Volume was a reasonable 615,000 shares traded in a stock which peaked at £150 pounds on February 23, up ten times on early October levels.

'I think it's cheap,' said Merrill Lynch analyst Coleen Kaiser, who pointed to many of the other high-flying technology stocks that had bounced or stabilised after recent sharp falls. 'Everything else has popped back a bit but Baltimore is just continuing to spiral downwards.

'Our price target is £145 over 12 to 18 months. I think it was a little expensive where it was but it's a good buying opportunity now, especially for these index buyers,' she added.

Baltimore was one of nine 'new economy' stocks pushing well-known names such as Whitbread and Hanson from the main index this month by virtue of rapid share price gains in the preceding three-month period. As of Tuesday night's London close, Baltimore's slide had taken it to 94th place in the FTSE 100 rankings, still well clear of the 110th position which would guarantee automatic demotion at the next quarterly index meeting.

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