THE WAIT­ING GAME

Finweek English Edition - - INVESTMENT -

Pin­na­cle came out with a sur­pris­ing trad­ing up­date say­ing that HEPS would be 15%-22% lower for the year end­ing June. This spooked the mar­ket, and the share lost 25%, tak­ing it to below R10 and well off the highs of al­most R30 from about a year ago. The first col­lapse was on the news of the direc­tor be­ing ar­rested for bribery (a news event that was mas­sively mismanaged by the Pin­na­cle man­age­ment team). The ques­tion is sim­ple: is this fall in earn­ings in any way re­lated to the bribery case that is on­go­ing or is it a ‘nor­mal’ op­er­at­ing per­for­mance? Nei­ther is com­fort­ing to ex­ist­ing share­hold­ers as Pin­na­cle has a long track record of in­creased earn­ings, and a de­cline raises a num­ber of red f lags that will only be cleared with the re­lease of the full re­sults ex­pected on 5 Septem­ber.

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