RETURN ON ASSETS
If there is one thing that has irked Finweek over the last two years, it is the creative treatment of assets to impress shareholders.
For example, last year Infrasors directors valued an investment property they held at R98m. With Afrimat as its new controlling shareholder, the same property looks like it will be valued at about R3m. Another small-cap play, Accentuate, currently has a market capitalisation of around R83m, but according to Thebe Stockbroking small-caps analyst Keith McLachlan, there is a “replacement value” for its East London Floorworx factory of nearly R500m according to management.
We suggest erring on the side of cau-