Unbundled companies: Which will make it on its own?
Unbundled companies — and there are some legends like Astral Foods and Montauk — often endure a tough initial trading period before winning the market’s respect (and love). So which recent unbundling will the market be enamoured with?
BUY: STADIOShare price: 382cJSE code: SDO There was an initial flurry of excitement when this tertiary education specialist was unbundled late last year from PSG Group-controlled private-education juggernaut Curro Holdings. But the private-education offering has shown some fallibility at the schools level in the past 12 months, with rapid growth rates checked. Stadio’s share price peaked at 878c in December last year, but was severely beaten back to a record low level of 382c at the time of writing. The shift seems to be in sympathy with similar retreats by Curro. Stadio CEO Chris van der Merwe is bristling with confidence about the company’s ability to capture a significant slice of SA’s tertiary-education demands, with affordable student packages. The macro-indicators are very promising, as the National Development Plan has set a target to accommodate 1.6m students in higher education by 2030. At this juncture 1m students attend 26 public universities and only 165,000 students are...
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