SHARE WATCH: Lesser known shares that offer value

Cape Town - Overberg Asset Management share analyst Kirk Swart looks at shares that aren't well known but offer value in this week's share watch.


Advtech reported a decline in diluted headline earnings per share of 3% to 69.1 cents. The results released was for the year ending December 2017. These results include fraud by a financial manager for a three-year period from 2015.

According to the company, the fraud that amounted to R48.1m had a material impact on the numbers: R2m will be ring-fenced for the legal fees relating to criminal charges against the financial manager. Fraud aside, student numbers only grew by 3%.

The company cites financial pressures and emigration as the reasons for the slow growth.

Sun International [JSE:SUI]

Sun International reported a decline in headline earnings per share from 503 cents in December 2016 to 298c per share in December 2017.

Even though the company is trying to grow the business outside of South Africa, it has not been all plain sailing. Some of the business overseas as well as that in South Africa has fallen short of expectations and the company will now look to raise $124.65m via a rights issue. The company will also close loss-making businesses in Colombia, Panama and South Africa.

Trellidor [JSE:TRL]

Trellidor is a household name in South Africa. The supplier of security gates saw revenue for the period ending December 2017 increase to R297.4m from R282.8m in 2016. Operating profit grew to R58.8m, up from 2016's R57.4m, while headline earnings per share grew 5% to 35.2 cents per share.

An interim gross dividend of 11c was declared. The company cites the December ANC conference as a big positive. The stronger rand will reduce input price pressures.

Trellidor is expecting strong demand from the UK in the second half of the financial year due to demand from key clients.

Interwaste [JSE:IWE]

Interwaste recently published its results for the year ending 31 December 2017. The company delivered overall revenue growth of 12% and for the first time saw revenue at more than R1bn.

The company mentions that the demand for itsr services are directly correlated to economic activity. The increase in revenue is due to price increases in the Logistics and Facilities segments as well as increasing volumes in the mining sector. Volumes with respect to government work remains subdued.

Headline earnings per share came in at 10.7c, a 16% increase from 2016.

Hammerson [JSE:HMN]

Hammerson is a European retail developer with a track record of over 75 years. Yesterday saw the share price of Hammerson increase as much as 31% in early trade as there was a share and cash takeover proposal by France's Klépierre.

The share price reached a high of R95 per share at one stage. The French company approached Hammerson with a bid worth £4.9bn. This bid is made to stop Hammerson taking over Intu properties.

In December it was announced that Hammerson and Intu agreed to a merger. If the merger is successful, it will create the largest mall owner in Britain.

Do you agree with Kirk's stock suggestion? Send us yours and tell us why.

*Kirk Swart is an analyst at Overberg Asset Management, an Authorised Financial Services Provider (No 783) which specialises in the private management of local and global discretionary portfolios as well as pension products.

Disclaimer: The above article does not constitute financial advice and is not a recommendation. Investors must always seek the advice of professionals and trade with caution. Under the ECT Act and to the fullest extent possible under the applicable law, Fin24 disclaims all responsibility or liability for any damages whatsoever resulting from the use of this site in any manner.

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