BID­VEST

Finweek English Edition - - INVESTMENT -

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.”

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