We are duly cautioned — so where is the deal?
Carrying cargo was probably the easiest job for Cargo Carriers the past year. The problem is there was less cargo to carry as many clients are in industries affected by strikes and lower commodity prices. Results for the year to end-February were therefore mainly down.
But there’s no sympathy in the market and Cargo’s share price was punished, at R12,50 just a smidgen above the R12,28 low for the year. That’s after the share price lost 39% in the past year. It’s likely to go lower, which is why IM has it as a sell.
What did keep Cargo busy was renewing and withdrawing cautionary announcements. It must have set a record and paid a pretty penny for all the announcements in the process.
Thus on September 3 it withdraws a cautionary, saying “discussions in respect of the offer received for the purchase of Cargo Carriers’ shareholding in one of its subsidiary companies have been terminated”.