The JSE trends sideways with concerns around Emerging Markets (EMs’) competing with a weaker Rand driving exporters.
Santova releases new Investor presentation
Following the recent release of financial results, listed logistics group Santova has put together an Investor presentation which is available on its website here – http://www.santova.com/investor-information/presentations/
Stefanutti treads water
After a miserable week of bad news out of the listed construction stocks, Stefanutti showed it was trying to keep pedalling in a demanding market environment. Revenue of R10.5bn ,cash of R913m and R14.3bn order book were positives … a R451m loss is not as pretty. However the loss includes an impairment – which if stripped out would move the group to a R216m profit.
Famous Brands drops
Shares in the listed fast-food operator dropped over 3% as the group warned that its earnings were under pressure, particularly on the back of an expensive offshore acquisition.
Datatec explains buy-back
Investors following this technology player are expecting the share buy-back to create some upward movement in the share price. The company explains that due to a legal technicality in the South African market, the buy-back will only re-commence after the next AGM. (https://www.moneyweb.co.za/mny_sens/datatec-limited-audited-provisional-results-for-the-year-ended-28-february-2018/)
Tongaat warns earnings will dip
The sugar and agriculture player released a trading update for the 12 months ended 31 March 2018 suggesting operating profit would be down by at least 15% with net debt rising to R6.4bn compared to R4.7bn in the previous year. For investor seeking exposure into the rest of Africa, the forecast profits suggest a well diversified business: The expected contributions to operating profit are: Zimbabwe R563 million (2017: R504 million), South Africa R86 million (2017: R390 million), Mozambique R159 million (2017: R308 million), and Swaziland R29 million (2017: R69 million).
Small-caps look cheap but …
AlphaWealth portfolio manager Keith McLachlan makes the point that SA small-caps look cheap using this graph.
Vunani analyst Anthony points out that highly-regarded mid-cap stocks PSG and Invicta have both hit 52-week lows.
The old mantra applies: Stocks are only “cheap” if there is somebody to ultimately buy them.
Fishing for earnings
Premier Fishing and Oceana both released interim results. Oceana saw headline earnings up 60% but includes a deferred tax benefit. If excluded, earnings were up 8%. The dividend rose from 90c to R1.12c/share.
Premier Fishing saw after tax profits up 59% while declaring a maiden interim dividend of 15c/share.
