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FIN 24 article - gives some insight into the fall of the share

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ABuzz
Super Contributor
I don't know if you've seen the article yet, but it explains some of why the share price took a dive. Here's the link http://www.fin24.co.za/articles/default/display_article.aspx?Nav=ns&ArticleID=1518-24_2221808
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3 REPLIES 3
Taurus
Super Contributor
Ok Abuzz well see 0n the 28th...i dont mind..got me some free ones here anyway.
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duke_vest
Frequent Contributor
i don't know, abuzz. you yourself know how i supported this brand in the past. even i have my doubts now. burnt my fingers bad on this one so far. thinking i should sell and take what is left.i dont wanna keep bluffing myself. when we hit 25c i already panicked. look where we are now. history of this share isn't great. what bugs me is that the directors don't really take this seriously. if you ask me, they aiming at a delisting (my opinion ownly for what it is worth).
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ABuzz
Super Contributor
Hey duke, I'm hanging in. I was fortunate to make some money on the freefall yesterday, bought at 4 and sold at 8. I reackon the share is priced correctly now and can grow from here, albeit slowly. The Nov 28th interims should give us a good idea of what is or isn't on track. Personally, and it is OMO, I think the BEE deal won't materialise, or they will have to give them more time to secure the orders. But even without the packs, I think they will do ok. They have a number of contract customers in the larger retail and pharmaceutical sectors and these offer regular revenue, albeit at lower profit. I think if they are on track to produce their forecated R 100 million revenue for the year ending Feb 2008, then that relates to a forward PE of 3-4 at current prices, which should bode well for a recovery in the price. OMO, but I think we'll be back to over 20cents by May 08.
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