The share price of BearingPoint has plunged to about $0.25 despite the firm recently posting its first quarterly net income increase in more than three years.
At the time of writing, BearingPoint’s share price on the New York Stock Exchange (NYSE) was 25 cents per unit with market capitalisation of about $54.5 million. The price had plummeted to a 52 week low of 17 cents on October 9 before rallying back into the mid-20 cents region.
This is compared to a share price of $8.80 shortly after the management and technology consulting services company began trading on the NYSE in October 2002.
Last November, a BearingPoint share was valued at $5.19.
In August, BearingPoint, a company that spawned out of KPMG Consulting, revealed its second quarter 2008 net revenue was $694 million compared to $685.8 million in the second quarter of 2007, an increase of 1.2 percent.
A BearingPoint spokesman told the International Accounting Bulletin the company could not understand what had caused the drop.
“It is very shocking to everyone here, we just reported some relatively solid financials compared to what we have had in the past quarter. It is mind boggling to us, we are all trying to figure out whether it is rumours on the market affecting it but we really don’t know,” he said.
“We have posted operating income for the last two quarters so it is very strange to us.”
The spokesperson said the company was looking at a reverse stock split to bring the price back up. This move has yet to be approved by its shareholders.