Caxton is a most unfashionable investment. It is heavily invested in a declining printing and publishing sector and its efforts at diversification pale in comparison to the technological transformation achieved by Naspers. Still, it’s a value-laden and conservatively managed counter that has more upside potential than downside risk. We don’t expect Caxton to shoot the lights out any time soon, but there could be some upside in the share price if certain strategic initiatives pay off. While Caxton’s operational endeavours are under strain in the moribund economy, the value proposition is compelling. IM would urge readers to pay attention to its JSE-listed "technology" subsidiary, Cognition, a vehicle to drive the group’s "cutting-edge" operations. The first move was the injecting of Caxton’s controlling stake in real estate marketing portal Private Property into Cognition in exchange for a heap of scrip worth R127m. As indicated in the interim results, Private Property’s revenue grow...

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