Off radar for now
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.