Rocky road to recovery: Mazor, KayDav and South Ocean Holdings
The graduates of the 2007 listings boom, especially those involved in the broader infrastructure space, have endured tough times over the past decade. So which of the surviving small counters still have a foundation for enduring growth?
BUY: MazorShare price: 151cJSE code: MZR This cape town-based firm specialises in aluminium and steel cladding for buildings and runs a glass operation. Since listing, Mazor has endured ups and downs, paying generous dividends in good years and knuckling down to ensure a swift profit recovery in bad years. It looks very much as if financial 2018 will be a bad year, with interim profits taking a serious hit in the economic slowdown. Interim earnings to end-August plummeted to 1.9c/share, from 21c in the corresponding interim period in 2016, meaning it will take a serious effort to produce even a 10th of the 2017 full-year earnings of 43c/share. But if the local economy is reinforced, Mazor will be a strong beneficiary of increased building activity. There isn’t huge downside risk in Mazor, which is underpinned by a tangible NAV of more than 225c/share. The firm has also been smart in its share-buyback endeavours, and there must be an opportunity to repurchase scrip again at sensible ...
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