Atlas Development and Support Services
Analysis
Atlas began listing in December 2014 at a price of KES 11.50. Atlas is one of the companies on the NSE which has taken a big hit, today it closed at KES 3.10 per share despite an announcement that it acquired East Africa Packaging Holdings Limited in order to jump into a rapidly growing Ethiopian consumer market.
The share price has been on a free fall due to declining oil prices thus revenues have followed suit in their core services division.
The acquisition of EAPH is a move meant to diversify its business in order to be sustainable.
Atlas still has a long journey and requires re-engineering of its business model.
In order to demonstrate the extent of their challenges, we have demonstrated this using Atlas parent company’s stock chart listed on the London Stock Exchange. It has lost a staggering 93.85% Year to Date. If short selling was allowed in our market, this would be the number one candidate without a doubt (the figures below are in GBP).
