THE AFROCENTRIC graph over the last month makes for sad reading. Especially if you are the Editor of Finweek and keep telling people that the investment case for this company is sound.
At R4/share (where the counter trades at the time of writing), 19% of the value is made up in cash and the 15c/share dividend. Importantly, Afrocentric carries this dividend up until February 2014, so factor that into your calculations. The earnings and fully diluted headline earnings make Afrocentric a bit of a nightmare to value but as of right now, you’re actually paying R3.10 for 76c/share in earnings, which puts the business on a P/E of 4. It’s a bit of a hack reason due to a number of factors, but nonetheless it highlights that there’s value here. Yes, I’m talking about my book, and yes, I’m going to be buying more.