For those with an appetite for risk
IF YOU follow the happenings on Finweek. com, you will know that we recently f lagged Mustek as one where the insiders might be worth following. Recently the group financial director took a single-stock futures (SSF) position at around R5.10/share. This follows a similar trade earlier in the year where group CEO David Kan went long at R5.90/share.
It is always interesting to see directors deciding to use some gearing for their portfolios, especially when it is the financial director.
Mustek is trading around R5.40/share and this puts it on an P/E of around 7 times earnings. With a dividend yield of 3.7%, it’s quite attractive and to the credit of Mustek management, the company has consistently paid a dividend and managed cash resources well.
It’s interesting to see directors going long here and with the prospect of corporate action taking place and the share holding a net asset value of R7.62/share, it might be worth a punt.