Unusually high stock volatility is not likely to continue
Since the beginning of the year, CompuGroup's (OTC:CMPVF) [ETR:COP] stock returned +34%, while its benchmark index - TecDAX was up +15% and MDAX +17%. However, the stock showed abnormally high volatility rising as high as €74 or +80% - the highest level in the company's history while subsequently falling to €49. We reckon, the performance was mainly the result of overhyped M&A speculations (discussed later in detail) potentially catapulting CompuGroup to the monopolistic position (c. 80% market share) in the German hospital market.
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