Time to re-visit

Finweek English Edition - - INVESTMENT - MARC ASH­TON

JSE-LISTED Pur­ple Cap­i­tal is ex­pected to re­lease its full-year fi­nan­cial re­sults for the year ended Au­gust 2013 on, or around, 8 Novem­ber. If you’ve been fol­low­ing my in­vest­ment calls for the last two years, you will know that I re­ally like this story, but the share price – af­ter a brief visit to the mid-30c range – has lan­guished in the lower 20s for a while now.

I be­lieve that will fi­nally change once these fi­nan­cial re­sults hit the mar­ket.

Its gam­ing busi­ness, Volt­bet, battled to get any scale, and the R30m that the group re­alised from sell­ing it to Sun In­ter­na­tional should put cash on hand for Pur­ple Cap­i­tal, up at around R100m mark. This trans­lates into 12c out of 21c/share. If the group can turn a profit of R16m be­tween GT247, Pur­ple Cap­i­tal and Em­peror As­set Man­age­ment, then you can add another 1c/share of earn­ings into the mix. By my hum­ble cal­cu­la­tion, the NAV will be up around the 36c/share mark.

With rumours of a delist­ing per­sist­ing, share­hold­ers – like me – might be keen to see some value un­locked.

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