ABC Transport shares has seen better days than it has in the last 6 months. It is a stock in Ugometrics Portfolio and the least performed of all the stocks in the portfolio. To be fair they issued a dividend of 13kobo per share but that is not enough to stop the stock from its recent decline. Rather, the share price has been hit by a string of disappointing results as the company failed to improve and surpass expectations following its 2012 quarterly interim reports.
The result off course Is a string of losses that has seen the share price loose 63% of its value following its peak of N1.26 back in July. The share price is currently 80kobo and has even dropped to as low as 69kobo in the course within the last 5 months. We still hold the stock in our portfolio and believe the company has a good business model and good reputation it has built in the maket place. However, the company has to remain consistent and shed of the huge cost and impairment it is taking on periodically across its
The government increase in levy and duty is only going to make matters worse, this always happens when a company starts to lose its beqring and doing business with absolute and no synergy. The model has to spin off or sell off those hotel holdings, build new routes and concentrate a lot on cargo/mail thing. Online companies springing up all over the place, dont know why I havent heard of any kind of integration yet. I hold ABC shares, might be time to force d issue