All eyes remain on the fallout from the trade war between the US and China and investors remain wary of committing further capital.
These are some of the small and mid-cap stories from Monday 9 July 2018:
Torre to exit the JSE
Torre Industries has indicated that it will look to de-list from the JSE in an attempt to reduce costs and free up shareholder cash. Torre is down 34% over the past 12 months and currently trades on a price to earnings multiple of 8 and offers a 4% dividend yield.
Healthcare groups updated
Sharenet has updated its analyst consensus forecasts for the 3 major healthcare groups with Life Healthcare being rated a “Buy” and Netcare and Mediclinic rated as “Hold”.
Stellar rises
Investment holding group Stellar Capital Partners has risen 5% on an announcement that subsidiary investment Torre Industries will de-list. Stellar is up 17% year to date.
Improvement at DAWN
Distribution and Warehousing Network (DAWN) has indicated that it expects losses in its businesses to narrow when it reports results for the 12 months. Headline Loss Per Share will improve by between 74% and 78%. DAWN is down 53% year to date.
Tsogo disposes of property
Shares in Tsogo Sun Holdings rose 1.3% on confirmation that the group had disposed of its casino property portfolio to Hospitality for R23bn. Tsogo trades on a 9 times price to earnings multiple and offers a 5% dividend yield. Hospitality Property Fund trades on a price to earnings multiple of 6.8 and offers an 11.7% dividend yield.
Tharisa provides production update
Mining group Tharisa has provided a production update from its various operations indicating that the business is operating in line with management expectations despite weaker PGM prices. For those betting on a turn in fortune in Zimbabwe, the group has indicated that it is progressing on various projects.
New highs and lows
Invicta and MAS Real Estate PLC are both trading at 52-week lows while Distell Group has hit a new high since joining the JSE.
Small-caps at steep discount
Patrick Cairns from Moneyweb has put together a great report on the current valuations of small and mid-cap shares on the JSE. You can read it here – http://moneyweb-2.instantmagazine.com/investor/the-moneyweb-investor-issue-46/the-rocky-road-to-small-cap-redemption/
