Choppies: Investors nervous after share-price destruction
Choppies’ share price collapse will rekindle grim memories
In the wake of the Steinhoff debacle, investors are wary of any signs of irregularities — especially repeated ones.While the destruction value of Botswana-based retailer Choppies Enterprises over the past weeks is nowhere near as huge as that of the international giant, the share price collapse will rekindle grim memories.Usually when investors purchase a stock, the aim is to get exposure to a fast-growing segment of the market. Choppies is no different, offering exposure to the fast-moving consumer goods (FMCG) segment in mass lower-income segments of African markets.Jonathan Paledi, a portfolio manager at Inkunzi Investments, says taking investment decisions on a counter such as Choppies depends on investors being able to process information made available to them. Unfortunately, this key information is wanting at Choppies.A vague statement released by the retailer over delayed financial results offered no comfort to investors. It wiped P1.6bn off Choppies’ market value.Shareholde...
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