EDITORIAL: Shake-up among the small caps
Fresh bids and stronger numbers lift interest in forgotten stocks
The JSE’s small-cap sector is showing encouraging signs of life. Aside from some noteworthy profit performances by resilient stalwarts — which, in many cases, the market still seems to discount — there are finally strident bouts of corporate action. These moves, more than just a handful in recent weeks, hopefully underline the rich value proposition that has been snubbed or heavily discounted for years.
Strikingly, companies that local investors have long shied away from — due to various “hitches” or lingering controversy — have been at the centre of the action. Junior miner Jubilee Metals secured a R1.6bn bid for its platinum group metals and chrome operations, a price tag that represented a serious chunk of the group’s market value before the deal was tabled. Tin miner Alphamin — whose operations have been disrupted by political unrest in the Democratic Republic of Congo — is now subject of a C$503m change of control bid by International Resources Holdings...
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