Finweek English Edition - - INVESTMENT -


HOLD Thebe Stock­broking small­caps an­a­lyst Keith McLach­lan be­lieves that if you use the sum of the parts (SOTP) val­u­a­tion model for this new­comer to the JSE, you will find a val­u­a­tion around 803c/share. This rep­re­sents a 15% pre­mium to the cur­rent share price. On a for­ward val­u­a­tion, he cal­cu­lates that this could be closer to 920c/share. He told clients: “This will be a long-term in­vest­ment, as it will take time for Trans­ac­tion Cap­i­tal to prove to the mar­ket that it is more than just an un­se­cured lender with pe­riph­eral parts.” the theme, I like the am­bi­tious proac­tive man­age­ment and I like the com­pany’s dom­i­nant po­si­tion in the mar­ket.”

BUY un­der­weight po­si­tion in the lower yield­ing larger caps, par­tic­u­larly Growth­point. In the last month of the third quar­ter, we saw this po­si­tion­ing pay off, claw­ing back some al­pha as the SAPY In­dex pulled back.”


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