Carsales.com Ltd recently saw their share price drop while ASX has lost out thanks to a recent announcement from management with a negative result of $48 million.
The price of Caresales shares fell 0.9% to $ 11.64 during the lunch break, despite having recovered from a more pronounced 1.2% loss in morning trading.
On the contrary, even his peers have lost ground. The share price REA Group Limited plunged 2.1% to $ 72.53 while the share price SEEK Limited lost 0.5% to $ 17.50 and the S & P / ASX 200 index devalued by 0.7% of its value at the time of writing.
Stalled on Stratton
The online car classifieds business said its profit in the first half of the year would be about $ 48 million, as it reduces the value of its investment in the inefficient Stratton Finance business.
It's no big surprise the business is well known. The regulatory changes on car finance and the tight credit market conditions that also damage the banking sector have contributed to the devaluation of the value of the company.
The benefits of Stratton's streamlining have also taken more time to materialize, even if it is not all bad news.
Management said that the total volume of Stratton's contract was higher for the five months to November despite the challenges compared to the same period last year (although it did not say anything about the total value of contracts ). 19659004] The devaluation is non-monetary and will not affect the debt of the convenient group or its ability to pay dividends, although it has warned that its share of profits from Stratton will be halved between the 19th and the 19th year compared to previous financial year  In addition, Carsales.com also adheres to the indications provided at its annual general meeting and the management is discussing the long-term prospects for the Stratton business.
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