Edmond Jackson's Stockwatch: Morgan Sindall Group

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Does the recent plunge in the FTSE Small Cap-listed shares of this construction and regeneration group amount to a buying opportunity? I have followed Morgan Sindall Group (MGNS) periodically since listing in 1994: its shares have shown some fine runs and offered useful trading, although be aware that the inherent volatility of a cyclical share is enhanced in a tight market.

After a 725p, 12-month high amid last January's "risk rally", the shares drifted then plunged from about 660p to as low as 508p when a 6 November update for the July to early November period said ominously: "Since the half year we have experienced further market deterioration, which has impacted the short-term outlook into 2013."

The market did not swallow a sweetener about increased confidence for the medium-term outlook due to "success in securing a number of longer-term opportunities in growing sectors of the market" although the share fall stabilised after 20 November news of the group being awarded

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