COMPANY COMMENT
EOH’s share price woes continue
Shares in the IT services group have fallen below R10 for the first time since December 31 2009
EOH notched up another notable performance on the stock market on Wednesday morning, in what has been an implosion of Steinhoff-like proportions. Shares in the IT services group dipped below R10 for the first time since December 31 2009. That they recovered to close above the psychologically crucial level may be the sign that some stock market vultures have been looking for: evidence of a bottom. Of course it’s a far cry to EOH’s first move above R10 almost a decade ago, which began what would become an extraordinary upward climb for the share price, never marred by any major pullback. It culminated in EOH stock touching R180 in July 2015. EOH’s woes have been well documented: allegations of improperly awarded contracts, the unsustainability of a growth strategy based on one acquisition after another, worries about declining cash flow and the recent decision by US IT giant Microsoft to end its relationship with the company over an anonymous corruption complaint against EOH subsidiar...
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