Cettire Shares Bounce Back Amidst Morning Turmoil

Highlights:

• Cettire Ltd (ASX: CTT) shares experienced a sharp decline of 27% in morning trading but rebounded, currently down 13% at $4.06.
• Allegations in the Australian Financial Review regarding unpaid duties sparked investor concerns about Cettire's business practices and financial integrity.
• Cettire swiftly refuted the claims, clarifying its duty-charging policy and debunking misinterpretations of DHL shipping labels, indicating resilience amidst short-term market fluctuations.

Morning Plunge, Afternoon Resurgence

At the onset of the trading day, Cettire shares took a nosedive, plummeting by a staggering 27% to $3.41. However, within the span of a few hours, the stock made a notable rebound. As of the latest update, Cettire's shares are down by 13% to $4.06. Despite the dip, those who capitalized on the morning's low point are already witnessing gains of up to 19%.

Reasons Behind the Rollercoaster Ride

The catalyst for this rollercoaster ride was a report published in the Australian Financial Review. Allegations surfaced suggesting that Cettire failed to remit duties totaling $169.43 to Australian customs officials. Such accusations raised concerns among investors regarding the company's business ethics and the validity of its reported sales and profit growth.

Cettire's Rebuttal

In response to the allegations, Cettire promptly issued a statement refuting the claims made in the media report. The company clarified its policy of charging estimated duties on orders, emphasizing that any financial benefit derived from these charges is minimal. Cettire further explained that the terminology used by the Australian Financial Review, particularly regarding DHL shipping labels, was misinterpreted. The label's reference to "Duties & Taxes Unpaid" was erroneously construed as evidence of non-payment, when in fact, it merely indicated the non-utilization of a specific service provided by DHL.

Market Outlook

Despite the morning turmoil, Cettire shares have enjoyed significant growth over the past year, soaring by approximately 140%. The company's swift response to the allegations and the ensuing market recovery indicate a degree of resilience amidst short-term fluctuations.

As the trading day progresses, market observers keenly await further developments, underscoring the volatility inherent in the stock market, especially in response to sensationalized media reports.

Customer Notice:

Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.

Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com