Strong balance sheet, perennial profitability for Nu-World
Investors are staring at a perennially profitable firm with a strong balance sheet, dependable cash flows and generous dividend policy trading at a discount to its hard NAV
The possibility of damaging economic upheaval probably makes punters much less inclined to stare too long at the financial statements of small-cap companies — even those counters where value oozes from every line. Smaller companies at the whim of discretionary consumer spending might also be snubbed — and doubly so if some of the brands being peddled are imported. Presuming there are still small-cap pundits who are not entirely distracted — or terrified — by the political ructions, IM would urge readers to examine the interim results of Nu-World Holdings to end-February. IM picked Nu-World in November when the share price was about R30. The share has moved up since then, but it still offers plenty of upside on a trailing earnings multiple of six times and a yield close to 5%.
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