We are duly cau­tioned — so where is the deal?

Financial Mail - Investors Monthly - - Analysis -

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”.

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