En­gi­neer your own earn­ings

Finweek English Edition - - Companies & Markets -

IN­VESTORS WHO HAVE fol­lowed in the in­vest­ment foot­steps of re­tail and in­vest­ment leg­end Christo Wiese have reaped hand­some re­wards over the years. Wiese’s track record – from Pep­kor to Sho­prite and many things in be­tween – is lit­tered with an im­pres­sive his­tory of prof­itabil­ity. It there­fore makes per­fect sense to closely watch Wiese’s share deal­ings. His re­cent trad­ing ac­tiv­ity in en­gi­neer­ing goods com­pany In­victa – a com­pany of which he’s chair­man and ma­jor share­holder – sug­gests Wiese has some­thing up his sleeve. (How­ever, it seems he slipped a bit on Sho­prite, where he locked him­self in a zero cost col­lar in which he limited him­self to a ceil­ing of R87/share on 2m of his 82m shares un­til Fe­bru­ary 2013). ( 29 April.)

Since early De­cem­ber 2009 Wiese has bought about R4m in shares and sin­gle stock fu­tures in In­victa at around the 2 450c/share mark. A few other di­rec­tors have ei­ther been buy­ing or hedg­ing their in­vest­ments for a max­i­mum 3 713c/share for set­tle­ment in 2012.

In­victa is cur­rently in a closed pe­riod and due to re­port its fi­nan­cial per­for­mance to the year ended March. Its R139,6m profit for the in­terim pe­riod to Septem­ber was 9% down on the pre­vi­ous com­pa­ra­ble pe­riod – that at a time when most other cap­i­tal equip­ment dis­tri­bu­tion com­pa­nies have needed mas­sive cap­i­tal in­jec­tions and loans due to poor mar­ket con­di­tions. Al­most a third of the 165c/share In­victa earned was paid out in div­i­dends, a feat that should be re­peated with ease in a sub­stan­tially im­proved mar­ket.

In­victa im­ports and dis­trib­utes earth­mov­ing and agri­cul­tural ma­chin­ery, bear­ings and power trans­mis­sion com­po­nents. Ex­pec­ta­tions are def­i­nitely high for its full

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