MARC HASENFUSS: Why the market loves Argent
Argent has over the years proved capable of generating decent profits
At last count, light industrial conglomerate Argent boasted a NAV of R10.50/share. Just how much the market adores this business is reflected in the share price of under 400c, offering an eyebrow-raising discount of more than 60%. I calculate its real NAV at about 980c/share (sans intangibles) — but that still represents the kind of discount associated with the peddling of damaged or faulty goods. It’s worth remembering that Argent has over the years proved capable of generating decent profits. Despite a worsening economy, earnings for the half-year to end-September (albeit clouded by sizeable impairments) still came in at 31c/share and yielded a half-year payout of 10c/share. Perhaps the disconcerting discount is largely a market perception that Argent has not been aggressive enough in unlocking value for shareholders. So it might come as a great relief that the company last Friday announced the sale of its less-than-glossy Cedar Paint business (along with the Silverton property th...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.