YORKOR

Finweek English Edition - - INVESTMENT -

BUY Clu­casGray says it sees value in this small-cap share. The f i r m points out: “York ’s l ast f i ve years have been any­thing but bor­ing. A take-out of a com­pany 5 times its size, a f ire that de­stroyed 20% of its plan­ta­tions, a com­plete man­age­ment over­haul and a costly cap­i­tal rais­ing and debt ref inanc­ing are enough to make any­one run for the hills… and that is ex­actly what the mar­ket has done in our view. The com­pany has been prof­itable for the last t wo years and has sub­stan­tially re­moved risk via a re­duc­tion in its debt to eq­uity ra­tio to be­low 20%. At R3.66, York trades at more than a 40% dis­count to its tan­gi­ble net as­set value.”

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