Analysts tear into Liberty as its dismal trading update is punished by market
A lack of accountability and the absence of a clear strategy have left the market wondering where, exactly, Liberty's management is steering the 60-year-old company. This, together with a tough economic backdrop, may have been what brewed the "perfect economic storm" Liberty finds itself in. At the end of last week, Liberty released a trading update warning of a fall in earnings of as much as 60%. It sent the share price tanking, dragging financial services with it. The Thabo Dloti-led company now trades almost 40% off its April 2015 peak. While Liberty's performance is a function of a tough economic landscape, "a lack of clear management strategy has had some impact on the business", said Jordan Weir, a trader at BayHill Capital. Over the past 10 years Liberty has lagged behind its peers. Of the biggest six insurance and asset management firms listed on the JSE, Liberty is the only one whose shares have taken a downward turn over the past decade, declining more than 50%. Discovery ...
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