THE GOOD, THE BAD & THE UGLY|
GOLDEN MOMENTS WILL THIS PRESENCE BE FELT?
SHIPPING AND logistics specialist Santova (formerly Spectrum Shipping) has celebrated its new corporate identity with an acquisition.
It’s not a particularly sizeable corporate event at Santova, which has bought a small UK-based customs clearing and forwarding logistics business called Mogal International for a WHO NEEDS new gold listings when all the possible fun of marginal gold producers is to be had with DRDGOLD?
No sooner had debt-laden DRD announced it had raised much-needed new funding by issuing shares at between 540c and 580c, than the market decided to make an awfully dire pronouncement on the group’s prospects by smacking the share price silly.
At the time of going to press DRD had crumpled to below 400c, which means the poor suckers (who we would reckon to be rather enlightened investors) participating in the recent shares-for-cash issues are feeling a nasty burn in the back pocket.
DRD has on numerous occasions been written off by sensible investors, only to make a miraculous comeback in some form or other. Will it happen again?
This is one of those times when only the brave and the foolish clamber in with any vigour. combination of shares and cash.
About 4,8m shares will be issued at 10% discount to the 30-day volume weighted average price until 13 March and a cash payment of £86 500.
By our calculations the Mogal deal is worth some R2m, which makes it rather noble that the vendors – Sheraton Copland-Mander – were willing to take more than half the purchase price in shares.
Santova, which really needs to beef up its cash flows to attract serious investors, suggests the deal will give it a “presence” in the UK, enabling it to control and manage the entire supply chain between SA, Hong Kong, Mainland China and the UK.
For R2m it’s debatable whether Santova will be able to make this presence felt on its income and cash flow statements.
FONEWORX: HOW ENGAGING
IMPRESSED? We’re blown away by the fact that Foneworx (formerly the left-for-dead Interconnective Solutions) churned R9,5m in operating cash flow for the half-year ended December and posted earnings of more than 3,5c/ share.
And directors say prospects for the full financial year are “positive” and that an AltX listing beckons. With the cash pile topping R13m can a dividend be far off?
Who said you can’t teach an old dog new tricks?