Novus firms in face of revenue knock
The share price of Novus Holdings closed 2.35% firmer at R4.35 on Tuesday after the release of details of the hefty knock it will suffer on the new Media24 printing contract. The relative strength of the share price prompted speculation that the company could be a target of a control bid, although one industry insider said some investors believed that the recent collapse in the share price, to an all-time low of R3.63, had been overdone. "The company is quite cash-generative and the share is on a dividend yield of 13.18%, so it has some attraction for investors," said the insider. Sam Sithole, CEO of Value Capital Partners, which recently acquired a 10% stake in Novus and appointed a director to the board, said on Tuesday he remained convinced it was a good investment. He said the emphasis of Novus’s strategy in the short term was "adjusting the business to its new reality". During a presentation to investors on Tuesday morning Novus management said they had started a number of init...
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