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Thread: One of Pinnacle's Directors charged with bribary

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    One of Pinnacle's Directors charged with bribary

    http://www.fin24.com/Companies/ICT/P...-news-20140325

    I find this especially annoying as Ive just added this company to my portfolio at what I thought was a great price and now its shares are down 9% to R18.201.
    So what do you guys think is this a classic case of speculative fear in the market or is it a legitimate concern for an investor?

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    Platinum Member desA's Avatar
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    Given my recent experiences in South Africa, I'd not believe in any large companies being completely honest in their dealings.

    The national psyche appears to have moved away from ethical integrity, to take what you can, while you can, & as fast as you can. A nation truly on the moral skids.

    It will be interesting to see what the bribery entailed. For instance, if a SAPS case had been lodged against either the company, or the individual, he/it may have attempted to buy off the I/O, or responsible official. Wonderful to see that push-back occurred. Time to put the crooks in jail.
    In search of South African Technology Nuggets(R), for sale & trading in South East Asia.

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    Could be competitors downgrading them as they have info about what might be next available from pinnacle.
    Which should result in a spike. As a strategic move, buy now; sell in 2 months time.

    It would be beneficial to know who are pinnacle's competitors thou.
    If there is a trend in share significant drops; you might rely that they are transferring the funds.

    Alternatively, one of the internal employees might be disgrundled, or a team of employees and informed media about such activities or the police.

    If no activity is detected with the competitors sharing portfolios, >50% would rely on internal intel that pinnacle needs to revamp directors.
    This is more than critical, it means their shares wont go up within 6 months on average.

    Alternative source would be to mail / contact hr and ask them about open vacancies
    Dont care what are open - just quantity; this should give you better insight.

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    Quote Originally Posted by desA View Post
    It will be interesting to see what the bribery entailed. For instance, if a SAPS case had been lodged against either the company, or the individual, he/it may have attempted to buy off the I/O, or responsible official. Wonderful to see that push-back occurred. Time to put the crooks in jail.
    http://ewn.co.za/2014/03/26/Pinnacle...price-plummets

    I must say I agree with you on principal, but it still sucks to watch your money 1/2 overnight


    Its interesting to see what the analysts have to say;
    http://www.maudestreet.com/maude-str...1million-in.ht




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    Platinum Member Marq's Avatar
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    Police spokesman Paul Ramaloko said Tshivhase had offered the bribe to win a contract to supply the SAPS with handheld devices used in investigations.
    The devices, which sold for R55 000, were equipped with fingerprint scanners and allowed police in the field to check whether a person had a criminal record, he said.
    Ironic that a criminal activity is linked to the selling of devices used to catch criminals.

    I dont know that the market would have held a higher price based on a potential tender coming in.
    So this is more like a reaction to the company not getting future business and being tainted by this affair.

    In the current world of dealings this company is likely to thrive rather than dive.
    I would say hold your position and wait for the climb out of the woods as the price is probably undervalued at the moment.
    The cost of living hasn't affected its popularity.
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