MICHAEL AVERY: Market sceptical about SA Taxi turnaround shtick

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Behind the share sales by David Hurwitz and the share purchases of Chris Seabrooke

Transaction Capital CEO David Hurwitz is on a media and investor schmooze mission to repair damaged credibility, with the backing of some formidable shareholders who have upped their stakes in the past four trading days — notably Chris Seabrooke of Sabvest Capital and a former chair, and the second-largest shareholder, Coronation. This was after the loss of almost 70% of its market value the week before.

Judging by the share price reaction — a gain of 13% for the week but still 53% down on the R28.13 price the day before Hurwitz delivered that calamitous trading update — the market remains unconvinced. ..A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and TimesLive Premium.

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So the market should be, schmooze only fools some of the people some of the time. Recalibrate the balance sheet carrying values to lower of cost and net realisable value and its a horror show. The lenders are going to have to make a call soon. TC Ltd. could catalyse systemic risk

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