By Patrick Avenell
SYDNEY, NSW: Clive Peeters could be getting another please explain letter from the Australian Securities Exchange today, as its share price has bolted almost 50 per cent during trading today.
After opening this morning at 45 cents, share in Clive Peeters have risen to a remarkable 65 cents. That’s an increase of 44.44 per cent. This rise comes on the back of a 25.76 per cent rise on Monday and an 8.43 per cent jump on Wednesday. In total, since its close last Friday at 33 cents, Clive Peeters value has almost doubled.
What’s more, its value has increased 11-fold since its early December 2008 trough of just 6 cents. To explain in real money terms, if you had invested a lazy $1,000 in Clive Peeters at the end of last year, when only managing director Greg Smith was predicting future prosperity, and the market analysts were hinting at closure, you could sell out today for a $10,000 profit.
The last time Clive Peeters was trading this well was in late May 2008, when its shares closed at 67 cents. Throughout the intervening period, Clive Peeters has experienced a significant price drop, known derisively as the Clive Dive; a capital restructure; and review by KPMG; and the misappropriation of almost $20 million in funds.
Earlier this week, the ASX wrote to Clive Peeters requesting information regarding the aforementioned 25.76 per jump during Monday’s trading. In his response, financial controller Steve Rowarth said he was not aware of any information not already made public that could have influenced trading to such an extent. Considering that jump has been dwarfed by today’s activity, one predicts there will be another inquiry launched this afternoon.
Prices correct as of 2:30 this afternoon.