Shares in retailer Clive Peeters have rocketed by over 150% in 9 days following a ChannelNews exclusive story that revealed that the Company had been given a tick of approval by their bankers and vendors. The rise has prompted an ASX Query.
At the time we revealed that two Melbourne based investors were set to buy up stock in the Company following an extensive examination of the Company’s balance sheet and trading figures for the past two months.
On December 4th 2008 the shares were trading at $0.065. Today they are trading at $0.170. A big loser was the Westpac Bank and BT Financial and Melbourne investor Knapp investments, who sold their shares at $0.065 last week.
The sudden climb in value would have netted Westpac and Bankers Trust over $1 million dollars if they had sold this week Vs last week.
Today the Australian Securities Exchange (ASX) asked the Company to explain the rise. Clive Peeters company secretary Steven Rowarth wrote to the ASX telling them that the company is not aware of any information which led to recent trading in the securities of the Company.”
The ASX also questioned Clive Peeters’ profit position for the December 2008 half year, and requested information as to whether it would by more than 15 from what the Company had originally forecast.
Rowarth wrote saying that was unable to give a definitive answer to this question however he did say that they were set to make a profit. He did however say “The very challenging retail conditions affective big ticket discretionary retailers have continued into the December 2008 quarter, impacting sales and margins. The Company is unable at this time to quantify the December 2008 half year result because trading in December is material to the December 2008 half year result.”