Secure electronic payments and transactions technology company Prism`s share remains volatile after having lost half its value in one day last week.
The share fell from 80c to 40c on Thursday after the group released what analysts have described as poor results for the interim period to December 2001.
Investors took a dim view of the results, despite attempts by the Prism public relations machine to put a positive spin on the figures.
Most analysts have voiced concern about cash resources and debt levels, but perhaps the most critical assessment came from online brokerage Tradek.
The brokerage has issued a newsletter saying that Prism management`s strategy to extend credit to customers to grow business is questionable as it continues to face a major cash squeeze.
In addition, "the R60 million impairment of its investments in European-based PayShop highlights management`s poor investment decisions".
Tradek also comments that one software deal, struck in December, contributed more than R35 million to operating profit.
"As the group only reported R33 million in operating profit it is clear that the rest of the operations have been running at a loss."
Although the Prism share has closed at around 40c levels since then, the share price has remained volatile. On Friday the share traded between 25c and 45c before closing at 41c.
By noon today the share was trading at 43c, its highest level of the day yet. It traded as low as 38c earlier this morning.
Share
