For those with guts
THIS IS NOT for widows, orphans or pretty much any one who might feel it if they lose some money if the trade bombs out. However, if you have a bit of an appetite for early-stage venture capital investments, then you might want to take a look at this business.
For those who don’t know the history, the once high-f lying AfDawn was decimated by fraud at one of its subsidiaries and corporate shenanigans at head office. In May 2008 it was R5.20 share, today it trades somewhere between 7c and 10c and has tried to reposition itself as an investment holding company. What caught my attention was the announced appointment of Mark Shuttleworth’s investment manager Keet van Zyl, Sure Travel CEO Vanya Lessing and the entrepreneurial Wendy Luhabe to the board. Van Zyl is active in the South African technology space with his venture capital business Knife Capital.
Even though these are non-executive appointments, the ability to attract three wellrespected players to the board says that there is a plan in place. In a worst-case scenario, the tangible net asset value (as reported in May 2013) is 12.5c/share and that means that at 8c/ share, where the counter is currently trading, you get a business at a significant discount.