Analysis by Patrick Avenell
SYDNEY, NSW: This week has seen a return to share market troubles of late 2008 for Clive Peeters, with the major appliance retailer shedding almost 50% of its share price after a bleak trading outlook was announced on Tuesday.
Clive Peeters started the week at 22 cents, still a long way short of its 70 cent 12-month peak from October 2009, but a lot healthier than its 6 cent nadir of December 2008. A series of unfortunate events, however, have left Clive Peeters balancing on the precipice of single figures, with the company today trading at 11.5 cents, after closing last night at 12 cents.
This represents a 47.7 per cent drop since Monday, with the worst damage occurring on Wednesday, when the share price dropped from 21.5 cents to 13 cents: a 39.5 per cent reduction.
Clive Peeters CEO Greg Smith remains resilient, however, with the battle hardened accountant retaining his positivity despite his refreshingly honest assessment of difficult trading conditions. Interest rate rises, a sluggish worldwide economy and a well-publicised $20 million theft are hurdles sufficient to bring down a Grand National thoroughbred, but Smith is continuing to gallop, citing the introduction of 3D TV has a motivator for consumer activity.
Add to that improvements in the housing market, some exciting new major appliances, and a little event called the FIFA World Cup, and there is reason for Smith to keep the faith.