The Auckland-based logistics and fleet management company’s stock hit $1.45 on Wednesday, the lowest since the shares first publicly traded on the bourse at $3.32 in August 2014. And this after being sold to investors at $3 apiece according to BusinessDesk.
The shares have lost a fifth of their value this year, and jumped 20% to $1.83 in trading yesterday morning, making them the biggest gainer on the S&P/NZX All Capital Index.
“The board of directors of Eroad confirms it is not aware of any material matters relating to company performance to explain recent changes to its share price and that it considers the recent share price reduction to be contrary to the company’s 
current performance and outlook,” the company said in a statement to the stock exchange yesterday.
In May, Eroad posted a $1.3 million annual loss, missing its prospectus forecast for a $5.5 million profit. On Monday, it said its first-half sales for the current year were overall in line with its expectations, though its growth market numbers disappointed.
“Overall, the board is pleased with progress made in the six months to September, 2016, both in New Zealand and the US, and is of the view that the current share price does not reflect the underlying value of the business,” chair Michael Bushby said in a statement.
The company will report first-half earnings on November 29.
