Get started
Our opinion on the current state of MANTENGU(MTU)Previously known as Mine Restoration, this company invests in mining resources. It owns the Langpan Project, which mines and processes chrome with a high concentration of platinum group metals (PGM). The Langpan orebody consists of 3.1 million tonnes of open cast resource and over 4.9 million tonnes of underground resource, as confirmed by the MSA Competent Persons report. In its results for the year to 29th February 2024, the company reported revenue of R109.9m compared with R4.5m in the previous year. Headline earnings per share (HEPS) was 1c compared with a loss of 12c in the previous year. The company said, "The most pleasing aspect is the fact that these results were achieved with the Langpan LG plant only operating at a steady state level from January 2024, and for the last two months of the financial year. Approximately R60.1 million of revenue was generated during these two months." The share trades an average of R141,000 each day, and the price has been rising. It remains a risky commodity share due to the volatility inherent in the mining sector and the reliance on commodity prices. However, the recent operational success and revenue growth indicate potential for future performance.
JSE:MTU
by PDSnetSA
Our opinion on the current state of RHBOPHELO(RHB)RH Bophelo (RHB) is a black-owned African healthcare company that listed on the JSE in July 2017 as a "special purpose acquisition company" (SPAC) after raising R500m (50,000 shares at R10 per share). It has since acquired shares in African Healthcare (Pty) Ltd. (AHC), Vryburg Private Hospital (VPH), and Rondebosch Medical Center (Pty) Ltd. (RMC), resulting in its reclassification by the JSE on 30th September 2018. The company acquired 30% of RMC, a company that was independently valued at R34.6m. In its results for the year to 29th February 2024, the company reported headline earnings per share (HEPS) of 282.3c compared with a loss of 49.8c in the previous period. The company's net asset value (NAV) increased 19% to 1599c per share. During the year, the company acquired: - 29% of Ambit Health Proprietary Limited ("Pelo") for R1.075 million in March 2023. Pelo operates a pathology services company. - 100% of MMed Distribution Services Proprietary Limited ("MMed") for a purchase price of R1. The company subsequently advanced a bridging loan of R4.8 million to assist in operations. MMed is a pharmaceutical distributor with distribution licenses across South Africa. - RazoHealth Radiology Proprietary Limited ("Razohealth"). From a private investor's perspective, the primary issue with RH Bophelo is that it has almost no volume traded, and the share price has been falling, which makes it unattractive as an investment. Despite the company's positive financial results and strategic acquisitions, the lack of liquidity and declining share price present significant risks for potential investors.
JSE:RHB
by PDSnetSA
Our opinion on the current state of TIGBRANDS(TBS)Tiger Brands (TBS) is a massive, diversified food producer and marketer in South Africa. It produces and sells well-known brands such as Jungle Oats, Tastic Rice, Koo, All Gold, Albany bread, Purity, Renown, Oros, Five Roses, Black Cat, and Fizzer. The company went through extreme difficulties over the listeriosis outbreak, which was linked to two of its factories and an abattoir. The outbreak resulted in the death of over 200 people. The company has insurance that covers any potential losses as a result of the listeriosis problem but does not cover exemplary, punitive, or constitutional damages. On 17th August 2020, the company announced that it had sold its meat processing businesses for R311m, which is considered a very low price. The company is vulnerable to lower consumer spending and rising input prices, especially maize. The Ukraine crisis may push food inputs up by as much as 20%, causing knock-on food inflation. The company is now planning for stage 8 load-shedding. In its results for the six months to 31st March 2024, the company reported revenue down 1% and headline earnings per share (HEPS) up 11%. Price inflation was 8%, and volumes fell 9%. The company said, "In divisions such as Bakeries, the loss in volume was a deliberate strategy to reduce the reliance on sub-optimal promotional activity and improve price realizations. Volume growth in Exports was offset by declines in the Domestic Business." Technically, the share was moving sideways and showing volatility since the COVID-19 low of March 2020. It broke above its long-term downward trendline on 18th July 2022 at 15689c and then rose to 21796c. However, in March 2023, the impact of load-shedding, higher raw materials costs, and constrained consumer spending caused the share price to drop sharply. For the last seven months, the share has been rising, but it remains risky due to its exposure to food prices and consumer spending. On 20th October 2023, the company announced that Tjaart Kruger would take over from Noel Doyle as CEO from 1st November 2023.
JSE:TBS
by PDSnetSA
Our opinion on the current state of PICKNPAY(PIK)Pick 'n Pay (PIK) is a retail grocery chain with 1,858 stores, mostly in South Africa but also in the rest of Africa. The company was started by Raymond Ackerman in 1967 and became the dominant grocery retailer over time, before being displaced by Shoprite/Checkers. Pick 'n Pay was in a slump when Richard Brasher took over as CEO in early 2013. Brasher set in motion a centralisation of distribution, which is now beginning to have a significant impact on efficiency and prices. He also implemented a store roll-out and a revamping of existing stores, which brought customers back to the chain. The essential difference between Brasher's strategy and that of Pick 'n Pay's main rival, Shoprite, has been that he focused on making the South African operation more efficient and winning back customers through good pricing. Shoprite, on the other hand, expanded aggressively into Africa, which has not always been beneficial. This is shown by the fact that it was forced to abandon Nigeria and is subject to the relatively high inflation rate in Angola, which became a distinct problem for Shoprite. Summers has once again resumed the role of CEO, following his stint at Pick 'n Pay as CEO between 1999 and 2007. In its results for the 52 weeks to 25th February 2024, the company reported turnover up 5.4% and a headline loss of 203.06c compared with a profit of 259.25c in the previous year. The company said, "Trading profit declined 87.4% to R385.0 million, reflecting a R1.5 billion trading loss for Pick 'n Pay (a sharp reversal versus FY23's R1.3 billion profit), and a R1.9 billion trading profit for Boxer (R1.8 billion profit in FY23). The result was further impacted by a 198.8% increase in net interest paid to R701.8 million, as a result of higher gearing and increased interest rates." Technically, Pick 'n Pay has been in a downward trend since 2016 and has lost substantial ground to Shoprite. On the latest results, it remains in a long-term downward trend. The link-up with Mr. D and Takealot should help the company to catch up in the online shopping market. To recapitalise the business, it is planning to separately list Boxer and conduct a rights issue to raise R4bn in mid-2024. This would require the Ackerman family to inject R1bn to retain their position as 25% shareholders. We recommended that you apply a 200-day simple moving average and wait for a clear upside break before investigating further. That break came on 27th May 2024 at a price of 2558c. Despite this, the share remains risky.
JSE:PIK
by PDSnetSA
Our opinion on the current state of DATATEC(DTC)Datatec (DTC) is an international IT and telecommunications company operating in more than fifty countries. It operates in the United States, South America, Europe, Africa, the Middle East, and Asia. Its business is divided into three main divisions: technology distribution through Westcon International, integration and managed services through Logicalis, and consulting and financial services through Datatec Financial Services and Analysys Mason. The CEO, Jens Montanana, is a 10% shareholder. On 3rd September 2019, Logicalis announced that it had purchased 70% of Cilnet, a Cisco systems integrator and services management company in Portugal. This acquisition expands Datatec's capabilities on the Iberian Peninsula. Additionally, it acquired Orange Networks in Germany. The company continues to grow by making "bolt-on" acquisitions, including Stelacon in Sweden for $2.6m, Nexia in Norway, and Mars Technologies and Clarotech in South Africa. On 1st June 2021, the company announced the acquisition of Siticom, a 5G company operating in Germany. In its results for the year to 29th February 2024, the company reported revenue up 6.1% and headline earnings per share (HEPS) of 14.2c (US) compared with a loss of 9.3c in the previous period. The company said, "Westcon International continues on its growth trajectory, delivering an exceptional performance in FY24. Logicalis International also performed well; however, Logicalis Latin America faced numerous challenges in Argentina and Brazil, which impacted its financial performance." Technically, the share fell during the COVID-19 pandemic to around 2067c but then rallied to around 4119c. The Ukraine crisis took the share down to 3100c on 8th March 2022, but it has been recovering since then. We believe it will continue to perform, especially as the use of artificial intelligence (AI) becomes more widespread.
JSE:DTC
by PDSnetSA
Our opinion on the current state of 4SIGHT(4SI)4Sight (4SI) is a Mauritian company specializing in investing in "4th Industrial Revolution" companies and technologies. The first industrial revolution is seen as that which was involved in mechanization with water and steam power, the second came about when products were mass-produced, the third was the advent of computers and automation, and the fourth is what are called "cyber-physical systems." Cyber-physical systems involve cloud computing and the internet of things, evident in the development of so-called "smart factories." The business is divided into two areas: mining & manufacturing, and software, cloud, and enterprise solutions. It has 400 employees and 3,000 customers in 30 countries. It claims to have 42% of its income coming from outside South Africa. Since listing in October 2017, the share price fell from 235c to levels around 13c in September 2019. Since then, it has rallied to 31c. The company does not yet pay dividends. A company like this is extremely difficult to evaluate unless you have a deep understanding of the 4th industrial revolution. We would recommend a strict stop-loss strategy. On 6th October 2020, the company announced that it had bought back 30.6% of its issued ordinary shares and had finalized its sale of Digitata for just over R90m. In its results for the 14 months to 29th February 2024, the company reported revenue up 57.7% from the year to 31st December 2022. Headline earnings per share (HEPS) were 153.8% higher. The company said, "Cash balance increased by 57.8% from R70.3 million to R110.8 million. Increase in net asset value per share by 29.6% to 57.8 cents per share. Revenue excluding consulting revenue increased by 54.5% from R479.0 million to R740.1 million, which contributed to the increase in the cost of sales by 53.1% from R361.4 million to R553.3 million." Note: The company has changed its financial year end to 29th February from 31st December. We added this share to the Winning Shares List on 3rd August 2023 at 31c. Over the following six months, it moved up to 84c per share. Technically, the share is a penny stock that trades about R168,000 per day on average, which makes it practical for private investors.
JSE:4SI
by PDSnetSA
Our opinion on the current state of AFINE(ANI)Afine (ANI) is a real estate investment trust (REIT) formed in 2021 that specializes in acquiring petrol stations. The company acquired five petrol stations in February 2021 and two more in May 2021. In its results for the year to 28th February 2023, the company reported revenue up 29.74% and headline earnings per share (HEPS) down 16.09%. The company's net asset value (NAV) increased by 1.97% to 362c per share. In a trading statement for the year to 29th February 2024, the company estimated that earnings per share (EPS) would increase by 114.4% and HEPS would be within 20% of the previous comparable year. However, the company has less than R1000 worth of shares changing hands each day on average, which makes it completely impractical for private investors.
JSE:ANI
by PDSnetSA
Our opinion on the current state of BRIKOR(BIK)Brikor (BIK) is a company that manufactures bricks, roof tiles, and clay pipes. It was listed on the Alt-X in August 2007 and describes itself as "...a diverse manufacturer and supplier of building and construction materials across a broad spectrum of the market from low-cost housing, residential to commercial, industrial, civil engineering and infrastructure projects and has a brick and coal segment through its subsidiary, Ilangabi Investments." The company is trying to improve its BEE status. The share was suspended on the JSE from the end of July 2013 to 31st July 2020 at 9c per share. Since it resumed trading, it has shot up to 199c before settling back to 15c. In its results for the six months to 31st August 2023, the company reported revenue up 13.4% and headline earnings per share (HEPS) of 2.7c compared with 0.0c in the previous period. The company's net asset value (NAV) increased 19.4% to 15.4c per share. The company said, "The Bricks segment realised an operating profit before interest and taxation of R17.1 million (H1 F2023: R12.1 million), whilst the Coal segment realised an operating profit before interest and taxation of R9.8 million (H1 F2023: operating loss before interest and taxation of R10.8 million)." In a trading statement for the year to 29th February 2024, the company estimated that HEPS would be between 1.2c and 1.4c compared with a loss of 0.1c in the previous period. The average value of shares changing hands each day has fallen to around R6,000, which makes it impractical for private investors. The patchy revival of the construction sector since 2021 has been a positive factor. Selling bricks is a tough business in South Africa, and this company seems to have survived COVID-19, which speaks volumes for its management.
JSE:BIK
by PDSnetSA
1
Our opinion on the current state of ISA Holdings (ISA) ISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet, and information security services in sub-Saharan Africa. The company claims to employ some of the leading IT security specialists and to have the tools and experience to offer effective information security solutions. In its results for the year to 29th February 2024, the company reported revenue up 33% and headline earnings per share (HEPS) up 35%. The company said, "The high proportion of subscription-derived turnover in the current reporting period is indicative of the trend in terms of which customers are showing a preference for subscribing to consumption-based security solutions." This looks like a good quality IT company that is profitable but has gone through a tough time. The problem is that the share is thinly traded with only about R46,000 worth of shares changing hands on average each day. This makes it risky for private investors to buy a meaningful number of shares. However, on a P:E of 11.15 and a dividend yield of 7.18%, the shares look like good value. It was added to the Winning Shares List (WSL) on 8th February 2024 at 140c per share and has subsequently moved up to 175c.
JSE:ISA
by PDSnetSA
Our opinion on the current state of QUANTUM(QFH)Quantum (QFH) is in the chicken business, operating through four divisions: Animal Feeds, Eggs and Layers, Broilers, and an African Division where it sells related products. Quantum was significantly impacted by the drought in Southern Africa, but since that abated and the price of animal feeds came down, it has benefited from much higher prices of eggs and the lower cost of feeds. In general, the chicken business is a tough industry. It is labour-intensive, creating exposure to union action, involves large quantities of working capital tied up in stock and, to a lesser extent, debtors. The business is subject to unexpected disease threats like avian flu or Newcastle disease and has experienced the dumping of cheap chicken onto the South African market from Europe, Brazil, and America. With top-class management, a sustainable profit can be achieved, but the industry is regarded as relatively high risk by investors, which accounts for its low price-to-earnings (P:E) multiple and its high dividend yield (DY). The unprotected strike at Kaalfontein Farm has restricted output and cost an estimated R10m. The company suffered an outbreak of HPAI at its Lemoenkloof Farm, as well as loadshedding and labour unrest. In its results for the six months to 31st March 2024, the company reported revenue down 13% and headline earnings per share (HEPS) of 21.7c compared with 2.9c in the previous period. The company said, "During the current reporting period, the average price of yellow maize on the South African Futures Exchange (“SAFEX”) decreased by 16.6%; and the average landed price (Cape Town harbour) of soya meal decreased by 5.7%". Nobody knows what difficulties the business may experience over the next 12-month period. So, if you plan to invest in this share, be prepared for considerable volatility. This company sometimes has difficulty in passing on higher raw materials costs to consumers, especially in the current economic environment. On 7th March 2024, the company announced that 9.77% of its shares had been sold by Astral Foods. This sale caused the share to jump by about 73% because there is apparently a takeover battle looming. On 13th March 2024, the company announced that it had received a letter from Country Bird Holdings (CBH) indicating that it had no intention of making a takeover bid.
JSE:QFH
by PDSnetSA
Our opinion on the current state of BRIMSTON(BRT)Brimstone (BRT) is a black-controlled investment holding company with a diverse portfolio of holdings. It owns: 1. 54.2% of Sea Harvest, which is a listed fishing company and has a market capitalization of just over R4.5bn. 2. 100% of Lion of Africa, a loss-making insurance company, which decided in November 2018 to cease operations and close its doors. 3. 100% of House of Monatic, a loss-making clothing manufacturer. 4. 24% of Oceana, the largest fishing company in South Africa with a market capitalization of R8.6bn. Brimstone is increasing its shareholding by buying 8m shares from Tiger Brands, which will take its holding to 22.9%. 5. 6.1% of Grindrod. 6. 18% of Aon Re Africa. 7. 25% of South African Enterprise Development. 8. 49.8% of Vuna Fishing Company. 9. 12.8% of Milpark Education. 10. 25% of Obsidian (a black-owned investment holding firm positioned to benefit from the rollout of the NHI), which it increased to 80% for R35.7m in January 2020. Brimstone also holds a variety of other smaller shareholdings in property, healthcare, 3.9% of Long4Life, and 5.3% of Stadio. The company has been selling down its stakes in Life Healthcare, Lion of Africa, House of Monatic, Equites, Multichoice, and Phuthuma Nathi. It has used the proceeds to pay down R1bn of its debt. In its results for the year to 31st December 2023, the company reported revenue up 5.1% and headline earnings per share (HEPS) up 4%. The company said, "The year under review was characterised by high inflation, a weaker Rand and high interest rates. Continued load shedding and pressure in the domestic transport network, in particular the ports, have weighed heavily on the economy. The high unemployment rate continued to impact consumer spending in an environment where the consumer was already under pressure." Both ordinary and "N" shares are thinly traded, but the ordinary shares are worse. We regard the ordinary share as too thinly traded for private investors and, unless they begin to unbundle the portfolio, the extra value is likely to remain locked in. On 24th May 2024, the company reported that its intrinsic net asset value (NAV) had fallen 6.7% by the end of March 2024 to 1132c per share.
JSE:BRT
by PDSnetSA
Expecting a recovery the value of the brand and company. Firstly expecting to continue trending upwards if the starts trading above R1800-R2000. This is one company that seem to be resilient and functions in bad time because of how big the name is what it means to the people. Looking at Pick n Pay , fundamental it looks like it far fetch for it recover but it is one of the staple names in South African households. In his book 'Same as Ever' author Morgan Housel he leaves a few questions at the end of the book and one of my favorite ones is 'What's always been true?' and the answer to that big name and household company names survive and recover if it is well run. Looking at the chart the recent low could the lowest the share price has been at R1675 which is last years financial low at the end of the fourth quarter and last years high at R5720 which creates a huge potential in value to be recovered in the upcoming years.
JSE:PIK
by KhoraCapital
2
$JSEGLN - Glencore: How Far Can The Fifth Wave Go?See link below for previous analysis. Glencore did not take long to reverse after the previous analysis. The stock was in a hurry and did not go low enough to test the lower support channel. The strong reversal from 8708 has prompted an update with wave labelled as a zigzag pattern and price has now broken out of the channel added further evidence that the stock is now in wave . Fifth waves can be very strong in commodity stocks so the question is how far can wave go? Buy the dips, if we get any.
JSE:GLNLong
by Loyiso_BlaqueSoros_Mpeta
$JSEDCP - Dischem: Ending Diagonal & Loss of Momentum CautionSee link below for previous analysis. Dischem is still trading in the fifth and final wave of the advance from May 2023. Wave is unfolding as an ending diagonal pattern and has surpassed the previous target of 3300 cps. There is also a clear loss of momentum in the stock as new highs have not been confirmed by the MACD thereby giving a bearish divergence signal. The stock can still go much higher though locking in profits is wise at this stage of the trend.
JSE:DCPLong
by Loyiso_BlaqueSoros_Mpeta
2
UPDATE: Life Health Care exceeded our targets big timeLife Health Care was presenting a simple Head and Shoulders with a usual drop for a short. The price started off well then went to the entry. Wake up and not only did it go past R15.96 target... The market opened aty R10.80 exceeding our expectations and profits. It's these trades that we absolutely love and can't help but get excited when things go extraordinary to our favour. Now there is a W Formation and the price has broken up. So looking at a Medium Probability setup, we can expect the price to head to R14.29.
JSE:LHCLong
by Timonrosso
$JSEOMN - Omnia: 5186 Under Pressure, Will It Hold?See link below for previous analysis. Price has pulled back sharply after reaching 6655 cps. The invalidation level of the bullish outlook at 5186 is under pressure but still holding. What is a positive sign of a potential reversal is the reverse (hidden) divergence as the MACD has made a new low relative to the 2023 low but price has not. I am neutral-to-bullish and will become more bullish once price pushes beyond 6000 cps without first breaking below 5186.
JSE:OMN
by Loyiso_BlaqueSoros_Mpeta
Our opinion on the current state of STEFSTOCK(SSK)Stefanutti (SSK) is a South African construction company offering services in roads and earthworks, marine construction, concrete structures, bulk pipelines, piling, geotechnical services, open pit contract mining, affordable housing, mine residue disposal, and other areas. It operates in sub-Saharan Africa and the United Arab Emirates (UAE). The company is considering further downsizing to match its falling order book, which will mean retrenchments. The share price has fallen from its high of 2650c in November of 2007 to current levels around 56c. The company is not paying dividends. Construction is always a risky investment in South Africa. Much will depend on the progress of the South African economy and the availability of construction work from the government. This share is probably going to continue its long-term downward trend for the foreseeable future. We consider it to be a poor investment even as a speculation. In July 2020, Stefanutti was accused by Eskom of being overpaid R1bn for work done on Kusile, which the company denies. In a restructuring plan, the company is selling non-core assets and plant and equipment and trying to obtain further funding of R430m to counter the impact of COVID-19. The company is engaging in a restructuring plan which involves the sale of non-core assets, securing additional short-term funding of R430m, and cutting costs. The company is technically insolvent, and we think that this company may well follow many of its peers in the construction industry into consolidation or business rescue if the current restructuring does not work. In its results for the year to 29th February 2024, the company reported revenue up 17% and a headline loss per share of 55.73c compared with a loss of 38.73c in the previous period. The company said, "...at 29 February 2024 the group's current liabilities exceeded its current assets by R1,136 million (Feb 2023: R1,141 million), and the group's total liabilities exceed its total assets by R52 million (Feb 2023: R66 million)." The company's shares have become a "penny stock" and it remains a highly risky loss-making business.
JSE:SSK
by PDSnetSA
Our opinion on the current state of MAHUBE(MHB)Mahube (MHB) is an infrastructure holding company which reversed into Gaia and is involved in large-scale energy transport, water, and sanitation projects. It is 41.35% owned by the Government Employees Pension Fund (GEPF). The company says, "Mahube Infrastructure owns five renewable energy assets – two wind farms and three solar PV (photovoltaic) farms – all of which were licensed by South Africa’s Department of Energy in the first round of bids of the renewable energy independent power producer procurement programme. The assets are all currently in operation, generating electricity, which they sell to Eskom in accordance with 20-year power purchase agreements." In its results for the six months to 31st August 2023, the company reported revenue up 38.8% and headline earnings per share (HEPS) of 47.8c compared with 29c in the previous period. The company said, "The dividend income earned by the Company during the period under review increased from R11.0 million to R23.0 million. This higher dividend resulted from receipt of a special dividend from two of the solar photovoltaic projects in which Mahube is invested, following the refinancing of these projects." In a trading statement for the year to 29th February 2024, the company estimated that HEPS would be between 91.05c and 100.64c compared with a loss of 53.68c in the previous period. The company said, "The reasons for the abovementioned improvement are an increase in the total revenue mainly due to: • healthy dividends received from Mahube's investee companies, including special dividends received resulting from the refinancing of certain projects; and • a favourable change in the fair value of financial assets, due to a revision of wind forecasts and more favourable macro-economic indicators." The average value trading in the share is only R11,000, which makes it impractical for private investors.
JSE:MHB
by PDSnetSA
Our opinion on the current state of INVLTD(INL)Investec (INL) does specialist banking and asset management in South Africa, Australia, Europe, the UK, and a few other countries. Brexit in the UK has put pressure on Investec shares over the past four years. The decision to separately list its asset management division in the form of Ninety-One has unlocked shareholder value, which is becoming more apparent now that the pandemic is coming under control. The new listing's major challenge has been to convince investors that it is not a South African play but has international asset management capability. The company is going after clients with an annual income of at least GBP300,000 a year and assets of at least GBP3 million. So far, they have about 6,000 clients but plan to increase this to 9,000. The company distributed 15% of its shares in Ninety-One and retained 10%. In its results for the year to 31st March 2024, the company reported adjusted earnings per share (EPS) up 13.4% and revenue of GBP2.09 billion, up from GBP1.99 billion. Assets under management (AUM) increased 5.5% to GBP20.9 billion, and the company bought back R6.8 billion worth of its own shares in the market. Technically, the shares are in a strong upward trend, which we expect to continue. Trading at a P:E of 7.62 and a dividend yield (DY) of 5.10%, we believe that this share is undervalued among blue chip companies trading on the JSE and that it will continue to perform well.
JSE:INL
by PDSnetSA
Our opinion on the current state of HCI(HCI)Hosken Consolidated Investments (HCI) is a BEE investment holding company owned by the South African Clothing and Textile Workers' Union. It has investments in gaming, hotels, media, transport, mining, and property. It owns 47% of a suite of gaming companies, including JSE-listed Tsogo Sun, which owns casinos and hotels, Galaxy Bingo, and Vukani Gaming (which operates gaming machines). They also own the JSE-listed E-Media group, which includes ENCA, Openview HD, and E-Sat TV. In transport, they own 74% of Hosken Passenger and Logistics, which owns Golden Arrow Bus Services. They own 52% of Niveus Investments and 84% of Deneb. They have 100% of HCI Coal, which is a junior coal-mining operation with two operational mines. HCI Properties has a portfolio of conference and exhibition properties like the Gallagher Convention Centre. Finally, it owns 40% of a technology company called BSG. On 26th April 2022, the company announced that a prospecting company that it has an effective 10% share of an investment in a company which has made a significant light oil discovery. This has caused the share to shoot up initially. In its results for the year to 31st March 2024, the company reported revenue up 6% and headline earnings per share (HEPS) down 29%. The company's net asset value (NAV) increased 5% to 23504c per share. In our view, this is a diverse and somewhat unfocused group trading on a P:E of 9. We suggested that this share was cheap at R80 in February 2022, and it has since risen to R171.62 and may climb further.
JSE:HCI
by PDSnetSA
Our opinion on the current state of FRONTIERT(FTH)Frontier Transport (FTH) is a bus company whose major asset is Golden Arrow Bus Services, but which also owns Sibanye Bus Services, Table Bay Rapid Transit, N2 Express, Eljosa Travel and Tour, Shuttle Up, and Alpine Truck and Bus. The company says, "The current portfolio is rooted in the commuter bus and luxury coach segments. Through its principal subsidiary Golden Arrow Bus Services, with over 160 years of proven operational expertise." In its results for the year to 31st March 2024, the company reported revenue up 8.9% and headline earnings per share (HEPS) up 37.8%. The company said, "The Group is pleased to show attributable Group profit for the period of R394.5 million (a 42.2% increase on prior year) and headline earnings at R385.3 million (an increase of 38.1% on prior year). The increase in finance costs of 45.1% is mainly due to the acquisition of new commuter buses. Investment income increased by 60.1% from R35.6 million to R56.9 million in the current period." Technically, the share trades about R92,000 worth of shares on average every day and has been in a gradual upward trend. Obviously, a company like this was heavily impacted by COVID-19 and travel restrictions, but it does appear to have recovered.
JSE:FTH
by PDSnetSA
Our opinion on the current state of BYTES(BYI)Bytes Technology was spun out of Altron and separately listed on the London Stock Exchange (LSE) and the JSE. At listing, it had a market capitalization of about R13bn, which has subsequently grown to R26.5bn. Altron shareholders received GBP542m in shares and cash at the demerger in a significant release of value. It describes itself as "...one of the UK's leading software, security, and cloud services specialists." The company is the biggest reseller of Microsoft products in the UK and receives about 60% of its revenue in annuity form. In its results for the year to 29th February 2024, the company reported gross income up 26.7% and headline earnings per share (HEPS) up 15.8%. The company said, "The exceptional level of growth was underpinned by strategically important contract wins in the public sector (most notably with the NHS and HMRC) and by continued demand from corporate customers. - Revenue increased 12.3% to £207.0 million (2022/23: £184.4 million)." Technically, the share rose strongly to a cycle high of 16100c on 25th January 2024 from a low of 6800c. We believe that it will exceed this high in the not-too-distant future. This share is a solid rand-hedge and will perform well going forward. On 21st February 2024, the company announced the resignation of its CEO, Neil Murphy, with immediate effect. He is replaced by Sam Mudd.
JSE:BYI
by PDSnetSA