Cape Town - Overberg Asset Management share analyst Kirk Swart looks at notable results and corporate action in this week's share watch.
Mr Price [JSE:MRP]
Mr Price released its excellent set of numbers for the 26 weeks ending 30 September 2017. The results show diluted HEPS increasing 23.6% to R4.34. These results are very pleasing in a tough trading environment.
Revenue growth was more subdued at 6.7%. Sales in comparable stores were up 4.6%. With retail price inflation at 2.6%, real same store growth was only 2%. Cash sales were 7.2% higher and credit sales 5.1%.
Cash sales make up more than 80% of the Mr Price sales. Building on the previous session's gains, Mr Price was trading at R201.80 on Tuesday.
Stadio announced on Monday that it was increasing its stake in the Southern Business School of Namibia to 74% through its 74% holding of Southern Business School SA.
It is one of Stadio's intentions to expand outside the borders of South Africa into neighbouring countries.
Stadio shares are trading 3.7% higher at R7.50 per share.
Peregrine Asset Management [JSE:PGR]
Small financial services company, Peregrine Asset Management, released its results for the six months ending September 2017 recently. In what the company refers to as Segmental Headline Earnings per Share, it has increased by 6%, up to R272m. Pregrine's core business consists of asset management, stockbroking and wealth management services.
The returns of Peregrine will be linked to the performance of both the global and local markets overall. Peregrine is a yield play offering investors a dividend yield of 4.2%. Peregrine is also listed on the A2X exchange.
Peregrine is trading at R29.20 by midday on Tuesday.
Vodacom has recently released its results for the six months ending 30 September 2017. Group revenue grew at 4.6%. When analysing telecom companies it is important to take note that voice revenue is increasingly becoming a smaller part of the industries revenue. Data and value-added services are the revenue drivers of telecom companies.
The problem companies such as Vodacom is facing is that the margins for data sales are diminishing as data is becoming cheaper and cheaper in a very competitive industry. Therefore, Vodacom could only manage to grow revenue by 4.6%.
Vodacom is trading 0.41% higher at R149.81 on Tuesday.
Investors in the PSG Group will be waiting for the “next big thing”. Known for big successes like Capitec, PSG will want to replicate that success with a couple of its other smaller businesses.
One of the exciting businesses that might well prove to be tomorrow’s winner, is that of Energy Partners. Energy Partners is a leading energy solutions provider. It offers clients cost effective energy solutions via solar panels and heat pumps. The energy can also be stored with its latest battery technology.
PSG was trading flat at R269.93 per share by midday on Tuesday.
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*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.
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