Shares in Timewave drop 5 percent, the second biggest faller on the FTSE Small Cap index, after the company posts in line full-year results but suspends its final dividend payment to maintain cash for investment opportunities.
"We recognise that the removal of the dividend (8 percent yield) means shareholders are no longer being paid to wait. Consequently, we see the Timeweave story now being dominated by how management intends to deploy its resources from an investment perspective," Investec says in a note.
Investec says it will not be materially changing its earnings forecasts post results, and keeps its 40 pence target price and "buy" rating, given the valuation, and potential for 'game changing' M&A in the short/medium-term.
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