Having taken some profits on Reunert and Imperial Logistics in recent weeks, we highlight some of the shares which are currently sitting on our radar at the moment.
African Media Entertainment:
Lack of liquidity has been a continuous issue for AME which is now trading on a forward Price to Earnings (PE) multiple 3.6 times earnings and offering an historical dividend yield of 9.6%. The company is currently undergoing a share buy-back which is part of the Employee Share Trust.
African Rainbow Capital Investments:
The investment holding group recently released its full-year financial results for the year ended 30 June 2019. The intrinsic Net Asset Value (NAV) per share has increased by 2.4%, to R9.45 with the share trading at R4.10 – well below the targeted 16% annual increase.
Blue Label Telecoms
The listed telecoms group continues to tread water as investors wait for clarity around the strategy related to Cell C and an update on the MTN roaming agreement
Cognition Holdings:
The owner of Private Property and other digital assets now trades on a PE ratio of 4 times earnings offering an historical dividend yield of 9.3%. The company has however warned the market that it expects headline earnings per share to drop by between 27% and 47% for the year ended 30 June 2019.
Gemfields Group
Buoyed by a share buyback, the Gemfields share price seems to have found a base at around the R1.55/share mark. The equity research Gemfields commissioned with Edison suggests the share is worth R4.91/share. The short-term catalyst appears corporate action around the Gemfields minority stake in Sedibelo Platinum. With platinum prices rebounding, it might prove an opportunity to exit the business and focus on the core business operations.
Hosken Consolidated Investments (HCI)
Hosken Consolidated Investments Limited (HCI) is a black empowerment investment holding company which has a diverse group of investments including hotel and leisure; interactive gaming; media and broadcasting; transport; mining and properties. The company holds a collection of great defensive assets purchased at relatively attractive prices. In the event of any improvement in the economy, HCI is likely to benefit across the board.
KAP Industrial
Up 13.5% in the last 7 days, KAP remains one of those “under-the-radar” businesses which continues to generate significant free cash-flow without making a lot of headlines. KAP trades on a forward PE of 7.4 and offers a handy 4.1% dividend yield.
RECM & Calibre (RACP)
This is not a share that we have looked at in much detail recently but it currently popped up on a screener highlighting shares trading at or near 52-week lows. RACP has some interesting cash-generative assets and trades at a discount to NAV. While the share price has underperformed, management remain highly regarded.
JSE Transport and Logistics counters
The sector as a whole continues to look interesting with the likes of OneLogix, Santova, Super Group, Imperial Logistics and Value Group all offering investors something to consider.
