HOLD Asset management f irm Vestact says that it remains positive on the stock following the a nnouncements t hat t he i ndust r i a l c o n g l o mer a t e wou l d b u y Amalgamated Appliances ( Amap) and Brandcorp Holdings.
Vestact told clients: “As shareholders of Bidvest, even though both these announcements are fairly insignif icant in the bigger scheme of things for t he company, I t ake away t wo things. The f irst is that Brian Joffe st i l l sees opportunities out t here, especially geared towards the South African consumer. That is certainly a good sign because he has a knack for making good acquisitions, probably among the best deal related timing in the country. The second is that both these companies have good potential synergies with each other and t he Bidvest group. By gaining access to Bidvest’s massive distribution and client networks these companies can take it to the next level. Bidvest, using its size and scale to dominate, that is what conglomerates do. We are happy to see the company doing what it does best.” price and labour issues. Analyst Percy Takunda advised: “The price catalyst for the stock will be a sustained operational turnaround prior to which there could be more negative pressure on the share price. Long term hold but not for shareholders with low risk tolerance.”