CPR attributes stock surge to good news on payroll scandal
- 13 October, 2009 15:44
Clive Peeters (ASX: CPR) has attributed positive news about its recent fund misappropriation scandal, and a series of cost reductions, to the fact that its stock price has jumped nearly 45% since last Friday.
CPR stock had been trading at $0.29 on Thursday, but surged 13.8% on Friday, and another 25.8% on Monday. The stock has today risen a further 1.2% to $0.42.
The electronics retailer’s stock was rocked by scandal in August, when it revealed that a member of the company allegedly misappropriated $19.3 million in funds.
But in response to an ASX price query, the company said it has since informed the market that it is likely to recover the losses from the sell-down of properties which had been acquired out of the funds. Clive Peeters has also told the market that its insurance is likely to cover the misappropriations.
CPR has also managed cost reductions of $38 million and inventory reduction of $23 million. The company also recently announced the launch of its online business.