THE GOOD, THE BAD & THE UGLY
FINWEEK has of late taken a shine to specialised technology contender Datapro and in that regard it’s good to see it’s in good company. Opportunistic Stellenbosch-based financial services boutique PSG has declared a 4% stake in Datapro, which was acquired at 112c/share.
PSG’s empowerment associate Thembeka (formerly Arch Equity) originally held a 30% stake in least cost service provider Orion Telecom. Orion was acquired 100% by Datapro late last year – a deal that created a rather formidable Internet/telecoms offering. PSG’s latest results show that Thembeka’s effective “retained” stake in Datapro (as at end-February 2007) was 2,5% – which means PSG has picked up the additional shares off its own bat.
Clearly, it’s a major vote of confidence to have PSG holding a strategic stake in new-look Datapro, which more market watchers (who have marked the share above 165c) clearly feel has all the attributes of a real technology contender.
But what will be more interesting to gauge is whether PSG – which currently holds a fair whack of cash after selling its shares in JSE Ltd – bolsters its stake in Datapro in the months ahead. Somehow we suspect it will… THE LAST THING Wellco – the rather insipid health products provider – needs now is a delay in its lifeline deal for its anti-malaria products. The company, which has fallen well short of pre-listing profit goals, has already been in need of rather desperate capital transfusions since listing in 2005. So shareholders probably won’t like the look of the latest Sens announcement.
PSG DIALS INTO DATAPRO
CASH DOSE DELAYED
Wellco advised its shareholders that the European humanitarian and medical foundation – which has proposed buying Wellco’s malaria medication – has asked for a 30-day extension to pay a 50% deposit on the purchase price. Maybe some will argue that such delays are commonplace in the corporate world, but us ordinary folk – who may have a propensity to sell houses or cars – tend to read ominously into situations where buyers don’t meet deposit obligations.
THE COPPER PRICE is looking darned robust these days. And don’t think it’s just the market-watching sophisticates who know it. A plumber tells us that increasingly he’s been called out to replace copper piping that’s been ripped out of walls of apartment buildings and private homes.
Somehow I don’t think too many people will be applauding the application of such new mining methods or the emergence of a new breed of commodity dealer…