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2 December 2015
Shares in business management software maker Sage Group (SGE) are bearing the brunt of the bears today despite in-line FY results and thus underperforming a still rallying UK Index . However, at first glance it would appear that share price technicals are the culprit rather than poorly received financials, even if FX remains a headwind. With the shares having put on almost 20% over the past 2 months to regain May 16yr highs, they seem to be suffering from continued profit taking which began on Monday after a brief foray above 585p. An 8% hike in dividend is clearly not helping revive sentiment, nor what looks like a decent outlook statement after a good start of the new financial year, or the fact that it hit 3yr financial targets while restructuring is ongoing. Having been sideways since May, investors are hitting escape, concerned that further correction may be on the cards.
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