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Johannesburg - Shares in AltX-listed microlender Blue Financial Services have once again come under the whip, shedding 20% or 17 cents per share to trade at 66c/share.
About 916 000 shares had changed hands by 1:20pm.
The share price meltdown, under way all year, regained momentum earlier this week following a profit warning and an admission it was struggling to access affordable funding lines.
November represents a haphazard month for the Blue Financial share price. It opened the month at 100c/share but was then heavily sold down to 70c/share on Tuesday. It regained value to close at 89c on Wednesday, but fell under renewed pressure on Thursday.
The group also warned that operating costs were "disproportionately high when compared to revenue, owing to the lower than expected levels of available funding".
The company expects to release its financial results later this month.
Analysts polled by Fin24.com were unable to identify a specific reason for Thursday's sell-off, but pointed out that it may simply be a case of investors losing faith in the counter.
Craig Martin from small cap tipping publication Sharetips.co.za advised readers: "Our take is to get out and stay out, at least until the dust settles."
A company that is likely to be negatively impacted by problems at Blue Financial is banking giant Absa.
The bank has a 21% stake in the business, as well as exposure of R120m via a "bridging loan" which was extended to Blue in June 2009.
- Fin24.com