Eutelsat suffered its biggest one-day stock-market price fall since it went public in 2005. The satellite operator issued what was, in effect, a warning as far as future trading is concerned. Despite both its 3 month and 9 month trading being perfectly respectable (as we reported on May 11th) Eutelsat used the occasion to warn that it was downgrading its formal guidance as to future trading.
Morgan Stanley, in a note to clients, used the phrase “the cat is out of the bag” in describing the new position, and adding that Eutelsat’s news represented “the fall of a much-loved stock”. And the market certainly voted with its feet, sending the shares into free-fall and representing – at one stage – a 15 per cent fall, and even with something of a modest recovery later in the day, the stock fell a massive 10.89 per cent (€2.88 per share) in its trading price on May 11th.