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Our opinion on the current state of JUBILEE(JBL)Here is the text with paragraphs added: Jubilee Metals Group (JBL) is a diversified metals recovery company that re-processes mine waste and surface materials. It is listed both on the London AIM market and on the JSE's Alt-X. It has operations in South Africa, the UK, Madagascar, and Australia, and it is involved in a joint venture in Zambia to produce lead, zinc, and vanadium. The company primarily produces platinum group metals (PGM) and chrome, and its primary asset is a 63% stake in the Tjate project, which is assessed to include the world's largest undeveloped block of platinum ore, with an estimated potential of 65 million ounces on the Western Limb of the Bushveld Igneous Complex. However, in recent years, the company has "...pivoted towards a smelting and beneficiation strategy as a cashflow survival strategy." Jubilee is currently spending about R154 million to consolidate its PGM retreatment business by buying a reprocessing plant and some dumps. The R154 million is being used to buy a chrome processing operation and 1.8 million tons of tailings from PlatCro Minerals. It is a low-cost producer but subject to the vagaries of the platinum and base metals markets. In its results for the year to 30th June 2024, the company reported revenue up 20.2% and chrome concentrate production up 20%. 6E PGM production decreased by 14.2%, and copper production was up 17.1%. The company said, "Group EBITDA decreased by 7.1% to US$27.7 million (FY2023: US$29.8 million), supported by increased chrome production helping partially offset the impact of the sharp decline in PGM EBITDA." In our view, this share is probably one of the better options in the mining sector but remains highly volatile and risky. We suggest waiting for a break up through the share's long-term downward trendline. On 7th October 2024, the company announced that it had increased its stake in project "G" to 65% and that it had secured an additional 2 megawatts of power from an IPP.
JSE:JBL
by PDSnetSA
Our opinion on the current state of DATATEC(DTC)Here is the text with paragraphs added: Datatec (DTC) is an international IT and telecommunications company operating in more than fifty countries. It operates in the United States, South America, Europe, Africa, the Middle East, and Asia. Its business is divided into three main divisions - technology distribution through Westcon International, integration and managed services through Logicalis, and consulting and financial services through Datatec Financial Services and Analysys Mason. The CEO, Jens Montanana, is a 10% shareholder. In its results for the year to 29th February 2024, the company reported revenue up 6.1% and headline earnings per share (HEPS) of 14.2c (US) compared with a loss of 9.3c in the previous period. The company said, "Westcon International continues on its growth trajectory, delivering an exceptional performance in FY24. Logicalis International also performed well, however, Logicalis Latin America faced numerous challenges in Argentina and Brazil, which impacted its financial performance." In a trading statement for the six months to 31st August 2024, the company estimated that HEPS would be between 58.7% and 74.6% higher than in the previous period. The company said, "Westcon continued its profit growth trajectory and Logicalis International strongly increased profitability." Technically, the share fell during the COVID-19 pandemic to around 2067c but then rallied to around 4119c. Then the Ukraine crisis took the share down to 3100c on 8th March 2022, but since then, although volatile, it has been recovering. We believe it will continue to perform, especially as the use of artificial intelligence (AI) becomes more widespread.
JSE:DTC
by PDSnetSA
Our opinion on the current state of EOHHere is the text with paragraphs added: Enterprise Outsourcing Holdings (EOH) was Africa's largest information technology company with involvement in almost every aspect of computer applications. At one point, the company had 11,000 staff members, but that has now been reduced to 6,151. It was, until August 2015, the darling of the JSE because it had a long track record of steadily improving profits. It made a peak of R178 per share at a P:E of 35. An unsuccessful attempt to exceed that high (i.e., a double top) came a year later in September 2016, and since then, the share has fallen steadily to reach a low of 146c in February 2023. This fall was initially accompanied by allegations that the company was involved in and owed its success to state capture in collaboration with the Guptas. The CEO and founder, Asher Bohbot, resigned in May of 2017 and handed over to Zunaid Mayet, who has now handed over to Stephen van Coller. Usually, when a company is run by a strong charismatic leader and that leader (like Bohbot) resigns, it is time to sell the share. The company's 200 subsidiaries have been consolidated into three divisions with centralized debt collection and procurement. On 6th July 2021, *Business Day* reported that EOH could possibly be "blacklisted" by the government as a result of its past tender frauds. This would obviously be very negative for the company. On 11th November 2022, the company announced a R500m rights issue and a R100m private placement mainly to reduce debt, and on 13th February 2023, it announced that the offer had been 135.8% oversubscribed. In its results for the six months to 31st January 2024, the company reported revenue of R3.1bn, slightly down on the previous period's R3.2bn. The company made a headline loss per share of 11c compared with a loss of 17c in the previous period. The company said, "Operating costs continue to be a core focus, and EOH is on track to eliminate at least R50 million from the FY2023 cost base, on an annualized basis, as part of the efficiency strategy. The Group's interest charge decreased to R68 million (HY2024) from R102 million (HY2023), as a result of the R600 million capital raise and the refinancing of consortium facilities with a single bank." In a trading statement for the year to 31st July 2024, the company estimated that it would make a headline loss of between 0.10c and 0.30c compared to a loss of 21c in the previous year. On 31st May 2024, the company announced the resignation of various directors and the appointment of Marius de la Rey as interim CEO. Technically, the share made a "double bottom" in April and May of 2024, after which it began a new upward trend. We believe that it will continue to rise.
JSE:IOC
by PDSnetSA
Our opinion on the current state of METAIR(MTA)Metair (MTA) produces energy solutions (batteries) and components for the vehicle manufacturing business. It has operations in Africa and in various European and Middle East countries. The company's energy storage business is located in Turkey in an operation called "Mutlu". The business it is in has the prospect of growing rapidly as electric motor vehicles replace those powered by internal combustion engines. The company has announced its intention to split into its European acid battery business and its automotive components business in South Africa. In a report on the impact of the floods in Natal, the company said, "Whilst the impact on Metair’s facilities was minimal and operations had promptly returned to normal, a major Original Equipment Manufacturer (OEM) customer of the Group advised that it suffered significant damage to its plant with production suspended for clean-up operations and assessments to be carried out." The company received a R150m insurance payout for business interruption from the Natal floods. In its results for the six months to 30th June 2024, the company reported revenue up 4% and a headline loss of 3c per share compared with a profit of 41c in the previous period. The company's net asset value (NAV) increased 12% to 2923c per share. The company said, "The reporting period required ongoing agility within Metair’s operating markets and mitigating actions to address the negative impacts of lower South African Original Equipment Manufacturers’ (“OEMs”) customer demand and volume variability." The share has been falling since October 2021. We recommend waiting for a break up through its downward trendline before investigating further. The share has been rising since June 2024, but has yet to break up through its long-term downward trendline. On 6th December 2023, the company announced that its CEO, Sjoerd Douwenga, would resign with effect from 31st January 2024 due to ill health. On 16th September 2024, the company announced that it had sold its entire shareholding in Mutlu, its Turkish operation, for R1,95bn. The news caused the share price to jump. On 5th October 2024, the company announced that it had acquired Autozone from the business rescuers for up to R290m in cash.
JSE:MTA
by PDSnetSA
THA.JSE Tharisa PLC Range Bound?Tharisa PLC Seems Range Bound. Buy now should you wish to enter this one. However is not that liquid at the moment. Needs to push past R22 to gain momentum. Analysis's Targets are high, and I'm sceptical at the moment, but these are for a 1 year out time-frame (+100%). The Price for Chrome or more China Demand could be a catalyst IMO. As always, please get a few outside Expert's Advice before taking Trade or Investment Decisions. Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away. Regards Graham.
JSE:THALong
by hitchcoxg
SSW - Price action vs commodity price trendsCommodity prices increased on upwards trend during the year, compared to SSW which declined due to reporting results of the last Q2. Even though commodity prices are up, the USD ZAR also plays a role here and the Rand was strong the last quarter which would impact the groups profitability in this Q. The rand is easing against the USD with the interest rate cuts going on and overall global uncertainty of the middle east. If you can cancel out the global noise then this stock is something to keep an eye on. (This is my stockpick notes - not financial advise)
JSE:SSWLong
by John2506
SOL.JSE Sasol Prints a Reverse Cup & Handle?Sasol Prints a Reverse Cup & Handle Pattern which could be Bullish. The Price pattern might retrace to form an Inverse Head and Shoulders. This Ticker is under extreme Duress due to many factors as we all know, so needs to be Traded and not held IMO. Use a tight Stop-loss if in. As always, please get a few outside Expert's Advice before taking Trade or Investment Decisions. Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away. Regards Graham.
JSE:SOLLong
by hitchcoxg
Our opinion on the current state of BALWIN(BWN)Balwin Properties (BWN) is a South African developer of secure sectional title properties. Recently, the company has shifted some focus towards renting out the properties it develops to diversify and enhance its income streams. Despite strong demand for its units, the company has expanded into providing solar power and internet fibre solutions. When listed five years ago at R10 per share, Balwin’s share price has since dropped to 270c. The property development market is heavily influenced by the state of the economy and consumers' disposable income, both of which have been under strain, particularly during the economic recession of the last three years. Balwin’s decision to increase its rental portfolio is viewed positively, as this will build passive income streams, which can help cover fixed overheads and contribute to profitability. The company owns 25% of Balwin Rental, which holds the right to acquire as many as 4,544 units developed by Balwin, a move that should help stabilize income. There are expectations that Balwin Rentals will eventually be listed separately. On 4th October 2020, Balwin launched its Mooikloof Mega City construction project, a R44 billion public-private partnership aimed at middle-income South Africans earning between R3,500 and R22,000 per month, often referred to as the "gap housing market." This caused the share price to jump by 13%. In its results for the year ending 29th February 2024, Balwin reported a 29% drop in revenue and a 48% decline in headline earnings per share (HEPS). Despite the challenges, the company’s net asset value (NAV) increased by 4% to 858.49c per share. The company noted that its annuity business portfolio saw strong growth, increasing its revenue to R132.5 million, which contributed 5.6% of the total group revenue, up from 2.3% in 2023. The group finished the period with a loan-to-value (LTV) ratio of 40.5%. In a voluntary update on 24th July 2024, Balwin announced plans to expand its rental portfolio to 7,300 units over the next 8 to 10 years, complementing its build capacity of 2,000 to 3,000 units per annum. However, in a trading statement for the six months ending 31st August 2024, the company estimated a HEPS decline of between 54% and 59%, citing ongoing pressure in the residential property sector due to high interest rates. Technically, Balwin’s share has been in a long-term downward trend. We recommend waiting for a break above this downward trendline before considering further investment. Despite its current challenges, the share is trading at 25% of its net asset value (NAV), which suggests it is significantly undervalued and could present a strong recovery opportunity as the broader economy improves.
JSE:BWN
by PDSnetSA
Our opinion on the current state of JUBILEE(JBL)Jubilee Metals Group (JBL) is a diversified metals recovery company that specializes in reprocessing mine waste and surface materials. It is listed on both the London AIM market and the JSE's Alt-X. The company operates in South Africa, the UK, Madagascar, and Australia, and is involved in a joint venture in Zambia to produce lead, zinc, and vanadium. Jubilee primarily produces platinum group metals (PGM) and chrome, with its main asset being a 63% stake in the Tjate project, which contains the world’s largest undeveloped block of platinum ore, estimated at 65 million ounces, located on the Western limb of the Bushveld Igneous Complex. In recent years, Jubilee has shifted its focus toward a smelting and beneficiation strategy as a cashflow survival measure. The company is currently investing about R154 million to consolidate its PGM retreatment business by acquiring a reprocessing plant and several dumps. This investment includes the purchase of a chrome processing operation and 1.8 million tons of tailings from PlatCro Minerals. While Jubilee is a low-cost producer, it remains exposed to the fluctuations in the platinum and base metals markets. For the year ending 30th June 2024, Jubilee reported a 20.2% increase in revenue and a 20% rise in chrome concentrate production. However, 6E PGM production decreased by 14.2%, while copper production increased by 17.1%. Group EBITDA declined by 7.1% to US$27.7 million, down from US$29.8 million in FY2023, primarily due to the sharp decline in PGM EBITDA, although this was partially offset by increased chrome production. In our view, Jubilee Metals Group is one of the better options within the mining sector, but it remains highly volatile and carries significant risk. We recommend waiting for a break above the share's long-term downward trendline before considering an investment.
JSE:JBL
by PDSnetSA
Our opinion on the current state of LESAKA(LSK)Previously known as Net1 UEP Technologies, Lesaka is listed on the Nasdaq and the JSE (LSK). It is a provider of fintech products in a number of countries. Its universal electronic payment system (“UEPS”) uses biometrically secure smart cards that operate in real-time but offline, which allows users to enter into transactions at any time. In its results for the year to 30th June 2024, the company reported revenue up 11% and a net loss of R326.1m compared with a loss of R629.2m in the previous period. The company said, "Fundamental earnings per share (a non-GAAP measure) of $0.06 (ZAR 1.06), improved ZAR 3.72, compared to a fundamental loss per share of $0.15 (ZAR 2.66) in FY 2023. - Merchant Division revenue increased 12% in ZAR to $498.3 million (ZAR 9.3 billion) and Segment Adjusted EBITDA increased 4% in ZAR to $33.4 million (ZAR 624.1 million)." The share trades R245,000 worth of shares on average every day, but there are days when there is no trade at all. On 5th December 2023, the company announced that Chris Meyer will step down as CEO in February 2024. On 6th February 2024, the company announced that it had acquired Touchsides, a distributor of alcohol to shebeens and informal taverns. On 2nd October 2024, the company announced the acquisition of the fintech company, Adumo, for R1.67bn in cash and shares.
JSE:LSK
by PDSnetSA
Our opinion on the current state of TELEMASTR(TLM)Telemaster (TLM) is a company that provides voice, data, and cloud communication services through a variety of offerings, including fixed line, fixed cellular, fixed data, and PBX services. The company operates through three main divisions: voice, cloud PBX, and internet. Its business consists of four key entities: 1. Catalytic Connections (Pty) Limited: A diversified ICT managed solutions provider serving medium and small enterprises. 2. Contineo Virtual Communications (Pty) Limited: Operates a Next Generation Unified Communications (UC) platform based on Cisco Broadsoft technology. 3. PerfectWorx Consulting (Pty) Limited**: A niche network systems integrator. 4. Ultra Data Centre (Pty) Limited: Built and operates a data centre located outside Pretoria. In its results for the year ending 30th June 2024, Telemaster reported a 6.7% decline in revenue and a 16.05% drop in headline earnings per share (HEPS). The company is very thinly traded, with only around R2,000 worth of shares changing hands daily due to most of the shares being held by a single shareholder—the Maison D-Obsession trust. This lack of liquidity makes the stock impractical for private investors, as it is difficult to trade in meaningful volumes. While the company may have some attractive elements in its service offerings and divisions, the thin trading volume presents a significant challenge for potential investors looking for liquidity and flexibility in their investments.
JSE:TLM
by PDSnetSA
AMS.JSE Anglo American Platinum Prints a Cup & Handle.Anglo American Platinum Prints a Cup & Handle Pattern which is Bullish. The Target Zone has been Project Up to show the Potential Upside. Remember these Patterns are only on average about 75% correct, and need Patience and Conviction to play out. As always, please get a few other outside Expert's Advice before taking Trade or Investment Decisions. Should you appreciate my Chart Studies, Smash That Rocket Boost Button. It's Just a Click away. Regards Graham.
JSE:AMSLong
by hitchcoxg
Our opinion on the current state of YORK(YRK)York Timber Holdings (YRK) is a South African forestry company that owns plantations, processing plants, and a wholesaling distribution network. It is the largest player in South Africa’s plywood and timber market. Founded in 1916 by Russian immigrant Herman Katzenellenbogen, the company was listed on the JSE in 1946. The National Union of Metalworkers of South Africa (NUMSA) is the majority union representing workers at York. York Timber has faced challenges over the years, particularly due to the prolonged downturn in the construction industry since the 2008 sub-prime crisis. In July 2007, the company’s shares peaked at R40, but since then, they have mostly been in decline or moved sideways. In May 2022, York Timber announced that a strike at its Escarpment operations, which account for 51% of its revenue, would negatively impact production. On 5th December 2022, the company revealed plans for a R250 million rights issue, offering existing shareholders 43.12791 new shares for every 100 shares held at a price of 175c each. The rights issue announcement caused a sharp drop in the share price. In its financial results for the year ending 30th June 2024, York reported a 5% increase in revenue and a significant turnaround in headline earnings per share (HEPS), which rose to 30.11c compared to a loss of 75.89c in the previous period. The main contributor to this profit was a R254.6 million revaluation of the company’s "biological assets," likely referring to the value of its forests. With an average daily trading volume of approximately R94,000 worth of shares, York Timber is a practical option for small private investors. Technically, the share had been on a downward trend since early 2022. We recommended waiting for a clear break through its downward trendline, which occurred on 19th April 2024 at 165c per share. Since then, the share has risen to 241c, reflecting strong recent performance. However, the company remains a volatile, construction-linked stock, and investors should carefully monitor its exposure to the broader economic environment and the construction sector’s performance.
JSE:YRK
by PDSnetSA
Our opinion on the current state of SPAR(SPP)Spar (SPP) operates a chain of supermarkets with 2,402 stores across Southern Africa, and it also runs the Build-It chain (focused on hardware and building materials) and the Tops Liquor chain. The company has diversified internationally, with operations in Southern Ireland through its BWG group (which operates 1,392 stores) and in Switzerland with 388 Spar stores. Spar's extensive use of franchising has enabled it to become a significant competitor in the South African retail market. Spar’s international expansion into Ireland and Switzerland provides a solid rand-hedge component, which is a valuable buffer against currency fluctuations. However, this aspect of diversification is not fully reflected in its current market multiple. The company’s new operations in Poland have faced delays and challenges due to the COVID-19 pandemic. For the six months ending 31st March 2024, Spar reported a 7.9% increase in turnover, though headline earnings per share (HEPS) dropped by 7.6%. Operating profit for the group reached R1.6 billion, with a slight improvement compared to the previous period, but higher net finance costs negatively impacted profit before tax, which declined by 11.2%. In South Africa, Spar saw a 4.8% increase in wholesale turnover across all business units. The BWG Group in Ireland and South West England showed strong performance with turnover up 5.7% in EUR terms (16.0% in ZAR terms), while the Swiss business saw a 4.6% decline in turnover in CHF terms (but an 8.7% increase in ZAR terms). In its trading update for the 47 weeks ending 23rd August 2024, Spar reported a 3.5% increase in sales, with grocery and liquor sales up 6.1%, Build-It sales up 1.2%, BWG up 2.6%, and Spar Switzerland down 5.8%. Group turnover from continuing operations increased by 4.1% during this period, but exchange rate fluctuations and inflation negatively affected performance. On 4th September 2024, Spar announced that it would pay an estimated R2.7 billion to settle debts related to its struggling Polish operations in order to sell them to a local retailer for R185 million. This one-off cost caused Spar’s share price to drop sharply. Despite these challenges, the share appears underpriced at current levels, representing a potential bargain. The share broke through its long-term downward trendline on 12th June 2024 at 11,065c and has since risen to 13,259c. While the recent news regarding the Polish operations caused a price dip, Spar’s diversified operations and rand-hedge exposure could offer further upside, making it a worthwhile consideration for investors.
JSE:SPP
by PDSnetSA
Our opinion on the current state of NAMPAK(NPK)Nampak (NPK) is Africa's largest packaging company, operating in South Africa and ten other African countries. While 60% of its turnover comes from South Africa, only 36% of its trading profit is generated there, with the rest of Africa accounting for 59% of trading profit from just 31% of turnover. Nampak has smaller operations in the UK and Ireland. The company produces four types of packaging products: plastics, metals, paper, and glass, with metals—primarily beverage cans—contributing the majority of its trading profits. One of Nampak's key achievements has been its ability to repatriate profits from countries like Zimbabwe, Nigeria, and Angola, from which it has removed R3.5 billion (US$265 million) in surplus cash. Although Nampak has halted its African expansion strategy after writing down its Angola and Nigeria businesses by R3 billion, it has shown resilience amid challenges like COVID-19 and oil price declines, particularly in Nigeria and South Africa. The company has faced significant debt issues, leading to a decision to raise R1.35 billion through a rights issue, which initially caused the share price to drop by 30%. Although the rights offer was reduced from R2 billion to R1.5 billion, shareholders ultimately approved raising up to R1 billion by 30th June 2023. Leadership changes also marked a significant development, with CEO Eric Smuts resigning in April 2023 and being replaced by Phil Roux. In its financial results for the six months ending 31st March 2024, Nampak reported a 7% revenue increase and a sharp turnaround in headline earnings per share (HEPS) of 5,393.9c, compared to a headline loss of 11,027.3c in the previous period. Metals, despite declines in DivFood and Bevcan Angola, posted a 6% revenue increase, driven by growth in Bevcan South Africa, while Plastics and Paper saw 9% and 10% revenue increases, respectively. On 1st October 2024, Nampak announced it had successfully refinanced the group with a significantly simplified funding structure, mainly funded by Standard Bank of South Africa with minimal foreign debt exposure. This followed the sale of its entire Nigerian operation for $68.5 million in May 2024, which triggered a clear on-balance-volume (OBV) buy signal. Another OBV buy signal followed on 20th June 2024 at R228 per share, with the share price rising to R447.74 since then. Given these developments, we believe that Nampak is positioned to continue performing well, particularly as it benefits from a stronger balance sheet, operational improvements, and streamlined funding.
JSE:NPK
by PDSnetSA
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Our opinion on the current state of ADVTECH(ADH)ADvTECH (ADH) is one of three listed commercial education companies on the JSE, alongside Curro and Stadio. The company operates through two primary divisions: the schools division, which includes well-known brands like Crawford, Trinity House, and Abbots, and the tertiary division, which includes institutions such as Varsity College, Rosebank College, and other specialized tertiary offerings. In total, the group comprises 109 schools and 33 campuses, serving 78,500 students. Historically, ADvTECH was primarily driven by its schools division, but in recent years, increasing competition has squeezed margins in this segment. As a result, the tertiary division has become the primary driver of profits for the company. The acquisition of Monash College, which now operates as IIE in the West Rand, has added 6,500 students to ADvTECH’s portfolio. This state-of-the-art campus includes laboratories, residences, and sports facilities, strengthening its tertiary division. In its results for the six months ending 30th June 2024, ADvTECH reported a 9% increase in revenue and a 16% rise in headline earnings per share (HEPS). Total group enrollments were up by 6%. The company highlighted a 15% increase in group operating profit to R865 million, with the education division's operating profit up 16%. Resourcing's operating profit increased by 3%, despite a decline in revenue, and the overall group operating margin improved to 20.2% (from 19.2% in 2023). The operating margin for the education divisions specifically improved to 23.5% (from 22.8%). Technically, ADvTECH has been in a strong upward trend since May 2020. With a price-to-earnings (P/E) ratio of 17.04, the share still appears to have upside potential. It is a solid, blue-chip company with good medium-term prospects, and it is currently trading at a relatively affordable valuation. ADvTECH is well-positioned to benefit from any improvement in the South African economy, especially with the appointment of the new government of national unity (GNU). Education is traditionally a defensive sector, as parents tend to prioritize and make sacrifices for their children’s education even in times of economic difficulty. On 1st October 2024, ADvTECH announced the acquisition of FNB's 47,000 square meter training and conference center in Sandton, further expanding its operational capabilities.
JSE:ADH
by PDSnetSA