ACC takes advantage of beat-up Pumpkin Patch shares
Accident Compensation Corp, the state-owned no-fault accident insurance scheme with more than $20 million of funds under management, has taken advantage of retailer Pumpkin Patch's shares near an 18-month low to lift its holding to 9.2%.
ACC bought 500,000 shares in the children's clothing chain on July 12 for about $411,000, or about 82 cents apiece. It had previously disclosed a holding of 7.9%.
The shares last traded at 82 cents and fell to 74.5 cents on June 28, the lowest since January last year, when the company said full-year profit may fall as much as 35% because of intense competition in Australia and delays in some deliveries from wholesalers. The stock has dropped 39% this year.
ACC investment manager Nicholas Bagnall said the corporation typically won't comment on companies it invests in.
The stock is rated a 'hold' based on the consensus of four analysts polled by Reuters though the median price target is $1.10.