Time to say good­bye

Financial Mail - Investors Monthly - - Opening Bell -

As much as fi­nan­cial hacks hate to see small-cap com­pa­nies scut­tling off the JSE, there is prob­a­bly some re­lief in the impending de­par­ture of soap and cos­met­ics maker Beige Hold­ings and bou­tique ho­tel spe­cial­ist Good­er­son Leisure Cor­po­ra­tion.

For the best part of a year Beige shares have bounced around be­tween 2c and 3c, re­flect­ing the mar­ket’s dis­en­chant­ment with the com­pany ever shift­ing closer to sus­tained vi­a­bil­ity. Con­trol­ling share­holder Lion Match al­ready owns more than 90% of Beige, and might as well take this peren­nial un­der­per­former out of the pub­lic eye to re­store some sem­blance of value.

Good­er­son, which lacks the crit­i­cal mass (and strate­gic touch) of a City Lodge, is also be­ing bought out by ma­jor share­holder ALJU Fam­ily Trust.

ALJU is of­fer­ing mi­nor­ity share­hold­ers 65c/share. The price seems fair since Good­er­son drifted be­low 40c in re­cent weeks — and re­cent earn­ings prob­a­bly did not sup­port the stated 157c/share tan­gi­ble net as­set value. Good­er­son share­hold­ers might do well to check out.

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