Po­lit­i­cal de­pen­dency


IN­VESTORS ARE ea­ger to find out what this counter is up to. It has placed trad­ing of its stock un­der cau­tion­ary, pend­ing an out­come of some “ne­go­ti­a­tions”. Dur­ing a dif­fi­cult pe­riod for bou­tique money man­agers, this black­owned firm has landed back in profit land. Yet, for the FY 2012 rev­enue in its ad­vi­sory ser­vices only in­creased a measly 1%.

Why? The Pub­lic sec­tor. The di­vi­sion mainly pro­vides ad­vi­sory ser­vices to the pub­lic sec­tor, which was hit hard last year due to non­ap­proval of bud­gets ahead of the ANCs elec- tive con­fer­ence in Man­gaung, Bloem­fontein. Po­lit­i­cal games will con­tinue to well af­ter the 2014 elec­tions are done and dusted.

No div­i­dends were de­clared for the said fi­nan­cial year. How­ever, we have drummed the is­sue that not pay­ing div­i­dends does not nec­es­sary mean poor per­for­mance, rather that the money will be de­ployed else­where in a bid to en­hance share­holder value.

For now though, much re­mains un­cer­tain.

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