Shares in Namibian investment company Trustco Group Holdings have made an eyebrow-raising bounce of more than 120% over the past three months. In early October Trustco shares had retreated all the way back to 620c after spiking to 1,349c at the end of August. The startling rebound — which values Trustco’s insurance, banking, mining and property investments at over R15.5bn — defies the overriding dour market mood for Southern African investment counters. In contrast to Trustco’s rousing rally, stalwart diversified investment counters like Remgro and Hosken Consolidated Investments have taken serious strain in the weaker regional economy. Trustco’s market rating also appears disconnected from its underlying fundamentals. The group now trades on a heady earnings multiple of more than 50 — the type of rating reserved for counters that the market believes are capable of producing strong (and high-quality) earnings growth over the longer term. Trustco’s earnings track record over the medi...

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