An electrifying option
THIS IS NOT a counter that will make it onto too many shortlists, but for those who enjoy small-cap investing, this is one that might be worth researching a bit.
A relatively unknown electricity play, South Ocean (SOH) presently trades on a price-toearnings multiple of just under 5 times. SOH manufactures a comprehensive range of lowvoltage electric power cables and supplies the building and construction industry and related infrastructure projects through electrical wholesalers and cable distributors.
When the financials were released for the full year ended 31 December 2012, the tangible net asset value of the group comes in at 324c/share. For a counter trading at 169c/ share, there appears to be a mispricing here.
Interestingly Investec Asset Management holds 10% of the issued share capital of the business.
While ARB has been grabbing the headlines over the last year, SOH may be a counter worth considering if it can replicate its earnings going into the new financial year.