PSG

Finweek English Edition - - INVESTMENT -

Fol­low­ing the re­lease of PSG in­terim re­sults to end Au­gust 2013, stock­bro­ker­age Imara SP Reid has up­dated its call on the fi­nan­cial ser­vices group. Point­ing out that the group trades at around 10% dis­count to net as­set value (NAV), an­a­lyst Steve Mein­t­jes ad­vised: “We are, how­ever, con­cerned at the OTC [over-the- counter] val­u­a­tion of PSG Kon­sult which places it on a 28 times P/ E ahead of a planned l ist­ing. This com­pany has per­formed very well but its pric­ing seems inf lu­enced by in-house exuberance. On an ar­guably gen­er­ous 18 times P/E for PSG Kon­sult, the dis­count for PSG re­duces to 3.1%. Man­age­ment is en­thu­si­as­tic about the po­ten­tial for smaller in­vest­ments it is in­cu­bat­ing, such as Im­pak (dis­tance learn­ing) and we have no doubt that some, if not all, of them will do very well. In the mean­time, how­ever, the share is fully val­ued.”

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