Clive Peeters’ owners suffer through Black Monday

By Patrick Avenell

Clive Peeters’ share price suffered a massive blow yesterday, with the retail group plunging almost 18 per cent to 11.5 cents. In the trading days since close last Monday, the share price has been slashed by over 38 per cent.

It was one of the darkest trading days in Clive Peeters’ short history, with the 2.5 cent drop yet another dip in a dramatic fall from the lofty heights experienced in early 2007, when the share price was hovering around the $3.40 mark.

Current.com.au has been inundated with requests from Clive Peeters employees and other concerned parties as to news and information about the group. We have continually contacted Clive Peeters’ head office seeking comment, but our calls have not been returned.

Managing director Greg Smith’s indirect holding in the company, almost 42 million shares, according to the most recent Change of Director’s Interest Notice, is officially recorded as a 32.68 per cent holding in the company. Other substantial holders in Clive Peeters include Westpac Banking Corporation, with 6.49 per cent voting power, and Kap Investments Pty Ltd, with 7.8 per cent voting power.

To give an real money example of Clive Peeters’ turmoil, Kap Investments’ cash consideration in the company when it became a substantial holder on 6 June 2008 was $4.74 million. It’s share holding today is valued at just $1.14 million. That is a loss of around $3.6 million in just 157 days, or almost $23,000 a day.

Shortly before 3pm today, Clive Peeters was trading at 10 cents, down 1.5 cents.

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