Shares digital

Only a couple of weeks after stating that earnings for 2007 were expected to be in line with forecasts, Chromogenex (CGX:AIM) has issued a profit warning, following registration issues with some of its products in Canada. The shares fell 33% to 3.3p after the tiddler said it is now anticipating a loss for the year.

The group has received notification from the Canadian Health Authority that it needs to do more work before its products can be registered for sale in the country.

Chromogenex says it is doing what it needs to obtain the licences for the devices, which include laser hair removal systems, and once this is complete, sales in Canada should recommence.

However, in the interim, Chromogenex is deferring any orders so far received from Canada for those products and as a result, earnings for 2007 will be significantly impacted.

Shares says: Shares in Chromogenex have put in a poor performance of late and this latest news means the stock should be avoided for now.

AVOID

by: Rachel Robson