The EOH share price has sky-rocketed and plunged like crazy of late on the back of allegations about the company's involvement in dodgy contracts, which lost it Microsoft as a partner. But even with this background, the moves have been extraordinary. The percentage change from a 52-week low is 50.1% and from a low 177.78%, with some erratic behaviour in between. While it may seem illogical for such huge moves to come out of nowhere, many of these major short-term spikes have been driven by the market dynamics associated with low float stocks.
In 2016, EOH was a darling of the stock market; a new age company providing a wide array of digital solutions to a wide range of businesses. But a too-aggressive acquisitions strategy eventually made it difficult for them to consolidate, left some elements of the business, particularly those that had contracts with government agencies, to their own unsavoury devices.
A full accounting of these allegations has still to be exposed, but in the meantime, EOH's share price has been trading from pillar to post. It is currently trading at about one-tenth of its high, around the level it traded in 2014. What accounted for such dramatic shifts?...
Read the full story on Daily Maverick.
AllAfrica publishes around 600 reports a day from more than 150 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.
Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.
AllAfrica is a voice of, by and about Africa - aggregating, producing and distributing 600 news and information items daily from over 150 African news organizations and our own reporters to an African and global public. We operate from Cape Town, Dakar, Abuja, Monrovia, Nairobi and Washington DC.