Off radar for now

Finweek English Edition - - GOING FOR GAMING INVESTMENT - SHOKS MNISI MZOLO

YOU’D NEED a great deal of faith to see an up­side in the Al­tech stock, which is lan­guish­ing at long-term lows. Af­ter end­ing in neg­a­tive ter­ri­tory last year, the counter has lost an­other 30% in value (whereas the tech­nol­ogy sec­tor is up 40%). Par­ent com­pany, Altron, is do­ing as poorly. Now at less than R40/share, Al­tech has more than halved since 2010.

The IT and tele­coms firm’s earn­ings state­ments haven’t looked good in a while and Al­tech’s for­ays into for­eign mar­kets have been dis­as­trous. See­ing that man­age­ment is not likely to bow out any time soon, the likely change would be in the game plan. But, how is fid­dling with the edges go­ing to help the ve­hi­cle-track­ing spe­cial­ist and maker of de­coders ex­tri­cate it­self from this mess? Given th­ese grim prospects, rather put your money else­where. If you al­ready own Al­tech, or Altron, stay put. But brace your­self for a few more bumps. On the up­side, mi­gra­tion to dig­i­tal broad­cast­ing could of­fer some sav­ing grace by driv­ing de­mand for Al­tech’s prod­ucts.

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