A shocking quarter-on-quarter Gross Domestic Product (GDP) number yesterday rocked the JSE and even a weak Rand wasn’t able to provide some under-pin.
Here are some of the small and mid-cap stories we spotted yesterday:
The cheapest equity sector in the world?
The JSE small and mid-cap sectors have been hammered noticeably over the past 24 – 36 months with liquidity and risk appetite weighing on investors. Small cap portfolio manager Keith McLachlan has put together some interesting analysis of the sector here – https://www.moneyweb.co.za/investing/cheapest-equity-sector-in-the-world/
Sandown NAV to fall
Peregrine backed investment holding group Sandown Capital has indicated that its reportable Net Asset Value (NAV) will fall when it reports results for the 12 months ended 31 March 2018. It expects NAV to come in at 4.87/share. Sandown Capital currently trades at R3.48/share.
Harmony to raise capital
Gold mining group Harmony has indicated that it will raise $100m through the issue of new shares. This represents around 15% of the share capital of the business. Capital will be used to pay down debt.
GAM to proceed with capital raising
Global Asset Management has indicated that it will raise R67m by issuing shares to existing shareholders. The shares will be issued at a price of R1.83/share (50 rights offer shares for every 100 ordinary shares. The rights offer will not be under-written and the proceeds will be used to fund the waste energy business.
Winners and losers
Limited liquidity was a major factor in some major share price movements on Tuesday with Basil Read (up 29%), Eastern Platinum (up 14%) and Master Plastics up 12%. These moves all happened on less than R35 000 of trade.
On the losers side, Mettle Investments was down 28% on R40 000 of trade, Kibo Mining dropped 22% on less than R1000 trade and Accentuate slid 16% with 15 000 shares changing hands at 25c/share.
Value hits new 12-month high
Logistics operator Value Group hit a new 12-month high when the share traded at R4.80/share. The share is up 23% year to date trades on a price to earnings multiple of 8 and offers a dividend yield of 6.3%.
Mazor continues share buy-back
Industrial group Mazor has updated the market on its share buy-back initiative. The company has authority to buy-back a further 16% of the issued share capital. To date the company has bought back 4.3m shares at prices ranging between R1.50 and R1.60/share.
Imbalie bails on beauty
After years of trying to get the listed beauty group to fire, management at the business have elected to pivot into a new industry. The company told shareholders that it would be exiting its beauty and salon operations and acquiring two new businesses Wepex and Makgarapa. Wepex is a geo-technical operation and Makgarapa is a Botswana based construction and services firm.
