POYNTING HOLD­INGS

Finweek English Edition - - INVESTMENT -

Thebe Stock­broking small-caps an­a­lyst Keith McLach­lan says that this counter has re­cently caught his at­ten­tion. He told clients: “While Poynting’s share is hor­rif ically illiq­uid, the Group’s IP-rich op­er­a­tions and its po­si­tion in a sweet spot within the tele­coms mar­ket with added mil­i­tary spend ex­po­sure all com­bine to make it a very unique counter on the JSE. As the lo­cal tele­coms wars heat up, capex spend and the evo­lu­tion of net­works over which ser­vices will be de­liv­ered are all key in win­ning the war and they all feed into Poynting’s prod­uct port­fo­lio. While I am not overly fa­mil­iar with mil­i­tary spend­ing cy­cles, it is in­ter­est­ing to find a counter that the­o­ret­i­cally could hedge your port­fo­lio against any po­ten­tial World War III.”

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