It’s tough out there!
A number of JSE-listed small and mid-cap stocks are taking a bruising and hitting new 52-week lows. Some of these include Aveng (down 23% on Tuesday), Niveus (50% in unusual trade), Argent, Efora and construction group Esor.
But wait… there’s more!
Shares in retail group Verimark hit a new 52-week high as the company announced full-year results for the 12 months ended 28 February 2018. Revenue was up by 15%, headline earnings rose to R33.7m and shareholders will be enjoying the 32.7% increase in dividend to 15c./share. The share trades on a price to earnings multiple of just 4 times earnings and a dividend yield of over 10%.
Highly-regarded coal operator Wescoal has risen by 10% in Tuesday trade on the back on just under R3m in trade. This follows a positive trading and strategic update.
Now you see it, now you don’t
African Dawn Capital has arguably one of the most colourful histories on the JSE in recent memory but even the most battle-hardened (desperate?) investors has to shake its head at the most recent developments here. Having parted ways with the Knife Capital team, AfDawn had repositioned itself as an early stage technology investor holding a stake in a start-up called YueDiligence. This was followed by the acquisition of another start-up called “SME Snapshot” for the princely sum of R350 000 settled by the issue of 18 shares in YueDiligence. On Tuesday, the company announced it was now un-winding this transaction.
With a market capitalisation of just R5.4m, a R350 000 transaction almost becomes material!
Blue Label bounces back
Shares in Blue Label rose 5.4% after a dramatic 8% sell-off on the previous day. Traders have attributed the sell-off in Blue Label to be related to forced sales relating to margin calls on geared positions. At R11.39, Blue Label trades on a Price to Earnings multiple of 5 times earnings and 3.7% dividend yield.
Ascendis joins A2X
Another announcement from Tuesday which might draw a frown was that Ascendis Health would be running a secondary listing on new exchange A2X. Ascendis has had a rocky time over the past 12 months as it tries to settle its capital structures and investors might be wondering whether this A2X listing is a pre-cursor to the introduction of a new strategic investor.
Coronation stays flat
Asset management firm Coronation released interims for the 6 months ended 31 March with headline earnings up 1% and total Assets Under Management (AUM) down 4%. The dividend yield remains an attractive 6.4% .