Investors cheer EOH as it finally shows a clean hand
Results included a detailed account of the ‘suspected criminal behavior’ behind the R4bn impairments
EOH boss Stephen van Coller certainly seems to be making the best of the bad hand he is playing with. And the good news is that finally it appears investors are appreciative.
Despite the unrelenting bad news emerging from the company, this week the EOH share price spiked (https://www.sharenet.co.za/v3/quickshare.php?scode=EOH) by almost 20% to R16. This is far off the R171 it was trading at in December 2016 but comfortably off the multi-year low of R9 at which it traded earlier in 2019.
The share price jumped just after the release of EOH’s results for the year to end-July 2019, which revealed a big drop in earnings as a result of impairments. The results included a detailed account of the “suspected criminal behavior” behind the impairments. ..