Facts about African Bank:
- Closing price TODAY is 30 cents, hence the title.
- The bank’s CEO resigned on Wednesday as the bank said it needs to raise R8.5bn in new capital.
- Return over the last 5 years is -98.44%. Negative!!!
- Intervention by SARB although some people that “ABL is not too big to fail”
- Support by shareholders
Some people believe ABL won’t survive while others believe otherwise.
The Question is: Is this the right time to buy?
Is ABL going to liquidate? And if so how soon? Is Monday a possibility?
Personally, I think that investors have lost confidence in ABL and as a result, ABL is going to liquidate sooner than many would have predicted. The question remains on whether ABL will survive the upcoming weeks never mind Monday.
Posted by Romeo