For those with an ap­petite for risk

Finweek English Edition - - INVESTMENT - MARC ASH­TON

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.

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