The Phumelela share price dipped to a new low of R0-80 at close yesterday after massive volumes had been traded.
There have been confusing overtures from various quarters, but government’s failure on Thursday to give local racing the green light would have further eroded whatever confidence there is in the prospects of the company getting up off the canvas and countering the fast diminishing ten-count.
In a recent post-lockdown renewal of their ongoing cautionary status on the JSE, Phumelela said that they are faced with circumstances that are beyond their control and which have had a material adverse effect on revenue since the start of lockdown.
Apparently measures have been implemented to reduce costs where possible, ‘however many costs remain fixed’.
They confirmed that the South African racing industry has been unable to stage race meetings from the date of the lockdown.
That is the current state of affairs, although Saturday’s Turffontein meeting, including three featuresd and a bid for the R1 million bonus on the SA Triple Tiara, still hangs in the balance.
All of Phumelela’s betting shops are also closed with no revenues being earned. The suspension of local racing has meant that there is also no South African product to export internationally. So it’s a bleak situation no matter how one spins it.
The horseracing and totalisator betting group listed in 2002 and its share price plummeted from a high in October 2016 of R25-87, to a year-end price of R24-25 a few months later.
