OPEN­ING DOORS

Finweek English Edition - - INVESTMENT -

Strip­ping out the Medi­clinic ac­count­ing treat­ment, the Rem­gro re­sults were very solid with the in­trin­sic value per share at R182.54, up al­most 20%, while the counter is trad­ing in the high R170s at the time of writ­ing. This makes for a dis­count to in­trin­sic value of less than 5%, which must be an all-time low as the dis­count has at times in the past been closer to 20%. Typ­i­cally, I would look to be a buyer when the dis­count is higher than 15%, but what are you buy­ing? Rem­gro is a hold­ing com­pany and in essence an as­set man­ager much like many other as­set man­agers, which would man­age your JSE in­vest­ments, but there’s one ma­jor dif­fer­ence – the un­listed as­sets, which are only around a third of the value of Rem­gro. Th­ese are com­pa­nies that the av­er­age in­vestor has no ac­cess to, so not only does one get the ex­cel­lent Rem­gro man­age­ment team work­ing on your be­half as a share­holder but you also get ex­po­sure to com­pa­nies such as SEA­COM, Unilever, e.tv and the like.

Rem­gro Lim­ited

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