Hold if you have to

Finweek English Edition - - INVESTMENT -

ELLIES RE­SULTS WERE slightly worse than ex­pected with the weaker rand and con­sumers un­der pres­sure.

Go­ing for­ward we’re not likely to see ei­ther of th­ese two is­sues sud­denly re­solve them­selves and while dig­i­tal ter­res­trial tele­vi­sion (DTT) will be a boon, de­tails here re­main sketchy as to when the roll-out will start (we are sup­posed to have con­cluded the process by end-2015). Fur­ther, while the lat­est cen­sus said that there are 11m house­holds with TVs, how many will get the set-top box? Ad­mit­tedly, there will be ad­di­tional chan­nels as DTT frees up space, but many may con­sider their cur­rent satel­lite so­lu­tion to be more than enough.

The last is­sue with DTT is that it will be a hotly con­tested space with other com­pa­nies also try­ing to get as much as pos­si­ble from the process, which could well crimp mar­gins.

If you hold Ellies I don’t see much more weak­ness ahead but I equally don’t see great share price ap­pre­ci­a­tion, so I while I’m not rush­ing out to buy, I’d rec­om­mend you hold if you al­ready own the stock.

Newspapers in English

Newspapers from South Africa

© PressReader. All rights reserved.