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Eroad shares bounce higher

Published: Thu 6 Oct 2016 12:14 PM
Thursday 06 October 2016 11:36 AM
Eroad shares bounce higher after company says stock price didn't reflect its value
By Tina Morrison
Oct. 6 (BusinessDesk) - Shares in Eroad bounced from a record low after the logistics and fleet management company said its stock price didn't reflect the underlying value of the business.
The Auckland-based company's stock hit $1.45 yesterday, the lowest since the shares first publicly traded on the bourse at $3.32 in August 2014, after being sold to investors at $3 apiece. The shares have lost a fifth of their value this year, and jumped 20 percent to $1.83 in trading this morning, making them the biggest gainer on the S/NZX All Capital Index.
"The board of directors of Eroad confirms it is not aware of any material matters relating to company performance to explain recent changes to its share price and that it considers the recent share price reduction to be contrary to the company’s current performance and outlook," the company said in a statement to the stock exchange this morning.
In May, Eroad posted a $1.3 million annual loss, missing its prospectus forecast for a $5.5 million profit. On Monday, it said its first-half sales for the current year were overall in line with its expectations, though its growth market numbers disappointed.
"Overall, the board is pleased with progress made in the six months to September, 2016, both in New Zealand and the US, and is of the view that the current share price does not reflect the underlying value of the business," chair Michael Bushby said in today's statement.
The company will report first-half earnings on Nov. 29.
(BusinessDesk)
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