South African investors are spoilt for choice right now. With low confidence in the local economy and its stock market neglected, share prices have a bargain basement look about them. Or as top money manager like ClucasGray’s Andrew Vintcent describes it, the JSE seems to be having a “fire sale.”
There’s a reminder in the latest update from stalwart Remgro, acknowledged as among the country’s best performing shares over the longer-term. Despite what the group describes as “many headwinds” during its financial year to end June, the businesses continued recovering profit now back to 17% above the pre-covid levels of 2019.
As for the stock’s rating, headline earnings per share of R11.51 are less than 12 times the current share price. That’s plenty appealing. The number in this week’s results that will get investors salivating, though, is Remgro’s intrinsic net asset value per share of R213.10. The shares are available in the open market at R133 – which means today’s buyers are getting them for 62c in each rand of value.
___STEADY_PAYWALL___Trying to directly compare companies with where they were in the past is never easy, especially with a holding companies which have unbundlings, sales and restructures. But with Remgro it is possible to compare apples with apples: its net asset value today is 40% higher than ten years ago when the share price was last at this level. To paraphrase Mr Vintcent, that’s a true “fire sale” price.
More for you to read today:
- Maimane’s Bosa is doomed to fail. Douglas Gibson says Mmusi should consider coming home to the DA when his latest project disappoints.
- Bank of England to Buy Bonds in Bid to Stop Spread of Crisis. U.K. central bank is launching an effort to restore order to the market for gilts.
- The Return of Inflation Makes Deficits More Dangerous. Britain’s proposed tax cut shows political leaders still stuck in prepandemic world of limitless borrowing.
- Fresh Evidence Emerges of Alleged Russian Atrocities in Once-Occupied Ukraine. More than 400 bodies were found in a mass burial site when Ukrainians took back a town that Russians occupied.
In this Q&A with RW Johnson after his “South Africa is at a turning point” speech he discusses the possibility of a repeat of July 2021’s civil unrest, where he gets his information, and where he sees South Africa in 5-10 years.
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