Guest co-host Delphine Govender and I struggled at the critical point of last nightâs BPH interview with EOH chief executive Stephen van Coller. Now that youâve cleared away most of the mess, whatâs the dream, Perpetuaâs founder asked? I added: why should long-term shareholders keep the faith, considering some have lost 95% of their capital?
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Maybe Van Coller was reverting to his conservative banking roots. Or perhaps the former head of ABSA Capital is gun-shy after overseeing two years of retrenchments, asset sales and having to âfess up on behalf of corrupt predecessors. His response was bland. Acceptable from a CEO running a corporate â but not one leading an entrepreneurial tech company.
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He only perked up at the end when I reminded Van Coller he is the person directly responsible for the out-performance of our BizNews Share portfolio. Because it was his initiative in bringing the faculty of Singularity University to Johannesburg that taught many of us about exponentiality. And, critically, to correctly value the few companies actually achieving it.
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In Howard Marksâ Memo to Clients which I referred to yesterday, he explains why equity investors have to be optimists. They are looking for upside, so require a good news story to support the numbers. After delivering its first half year of operating profit since cockroaches emerged, at last EOH looks to be at a tipping point. But until its managers believe this, the market wonât.
PS If youâd like to watch the recording of last nightâs in-studio BPH action, hereâs the link: https://youtu.be/XxQxzArBq0Q. For a daily reminder as the show goes live, join 19 000 others by going to BizNews TV and clicking on the âsubscribeâ button.
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