Engineer your own earnings
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