The Rand has started Tuesday on the back foot as Emerging Market currencies continue to take strain.
For the first time in a while there is some good news flow in the small and mid-cap space. These are some of the stories which caught our eye yesterday:
Ayo gets some coverage
There is a lot of interest in the empowerment ICT group which is backed by the PIC. This article from Marcia Klein on Moneyweb provides a good summary of some of the key issues here – https://www.moneyweb.co.za/news/companies-and-deals/whats-the-fuss-about-ayo-technologies/
New research portal for small and mid-cap stocks
While we haven’t had an in-depth look at their research, we are always keen to highlight new voices covering the sector. The team from Finance Hut have added a research portal which includes news from the likes of Consolidated Infrastructure, ARB Holdings, Balwin, Bowler Metcalf and Silverbridge Holdings. Check it out here and give us your feedback – https://financehut.co.za/stock-research/
Exemplar to kick off trading
A new property player arrives on the JSE today when REIT Exemplar starts trading.
Further forced sales at Invicta
There were a further R7m in forced sales from Arthur Goldstone the chief executive at industrial group Invicta. This is a result of a structured product being unwound. Invicta presently trades on a price to earnings multiple of 8 times earnings and offers a 4% dividend yield.
Impairments hit Argent
Industrial group Argent warned that losses would continue to rise as a result of impairments in its South African operations. Loss per share for the 12 months ended 31 March 2018 is expected to be between 394% and 414% lower at a loss of between 199.81 cents per share and a loss of 213.41 cents per share than the 68 cents earnings per share reported for the previous corresponding period.
Shares in dual-listed platinum group Jubilee Metals Group were up 6.67% with 21 000 shares changing hands at 48c/share. Jubilee announced it had successfully placed new shares with institutional shareholders.
Datatec to speed up buy-back
The listed technology group has indicated that shareholders want to see the buy-back of shares commence as soon as possible. The company will be circulating a resolution for shareholders to vote on starting the buyback before the next AGM.
Avior makes board appointments:
Financial services group Avior Capital Markets has appointed Justin Larsen as its official Financial Director (Previously served as interim FD). Thabo Mokgatlha has also been appointed as a non-executive director. Avior is down 51% in the past 12 months and trades on a price to earnings multiple of 4.7 times earnings.
Shares in electronics group Ellies jumped 17% on Monday following the release of a positive trading update from the company. Ellies is up 77% year to date but remains down 96% over 5 years.
More purchases at Master Plastics
We’ve previously flagged that directors at Master Plastics have been acquiring the shares on the open market. This trend continued with Manley Diedloff purchasing another 200 000 shares at R1.30.
Altron does a deal
The listed ICT group has announced the purchase of iS Partners – a South African Microsoft partner for R225m. According to the SENS announcement, Altron has paid a multiple of 6.25 times earnings for the assets.
Montauk directors take profits
After a stellar 5 year run delivering 1273% capital gain, directors at offshore energy group Montauk have taken some profits off the table. Executive director Sean Mclain sold R11.7m of shares according to a SENS announcement released yesterday.