Mustek’s stock nosedives, wiping out 10% of investors’ hard-earned cash.
The once-mighty technology distributor is facing a crippling financial crisis, with shares plummeting 70-80% year-on-year in a disastrous financial quarter. The news is a stinging rebuke to CEO X, who must be frantically backtracking after hyping up investors just a few months ago.
Acknowledging the economic Armageddon, Mustek cowered in a statement: “The operating environment was tough, and who isn’t scared when faced with an uncertain future and government’s inability to manage itself?”
In an act of desperation, Mustek slashed its profits to 25 cents, roughly a third of what they were a year ago, leaving shareholders scratching their heads over why they bothered buying into the doomed company.
“Mustek is a toxic waste dump now, and its value has evaporated,” says financial expert Y, echoing the sentiment of the market. “What a waste of investment opportunities, and now who will ever trust the once-respectable tech distributor?”
A Tale of Impairment
Mustek’s attempt to pawn off a “good-as-new” tech business for a quick buck, only to have the market expose its shenanigans, has led to the implosion of the once-revered brand. Mustek claims its basic earnings per share have plunged a whopping 85-95% since last year’s record profits. This after the company admitted that it had underestimated the fallout of load shedding’s disappearance and the ensuing loss of confidence in green energy projects.
Now, with a mere R12.29 per share, the outlook for Mustek appears grim, casting a pall of despair over its faithful following. Its shareholders’ value has all but disintegrated, making one wonder if Mustek ever held any genuine worth. We’ll keep you posted as the news develops and see if this toxic entity manages to right itself in time.
