Simon’s stock tips A GLOBAL PLAYER

Finweek English Edition - - SIMON SAYS - BY SIMON BROWN

Richard Pike, CEO of Ad­corp, was on the cover of Finweek a year ago as Tan­di­s­izwe Mahlut­shana and I had se­lected his com­pany as one of the JSE’s forgotten stocks. The ar­ti­cle listed 10 stocks and we got many wrong, and even Ad­corp has seen its share price f lat over the pe­riod. But I still like Ad­corp, and the re­cent ac­qui­si­tion of Dare Hold­ings in Australia strength­ens my con­vic­tion. Dare spe­cialises in re­cruit­ment in the oil and gas space in Australia, but can bol­ster its Mid­dle Eastern and African op­er­a­tions as most of the clients are global play­ers. Fur­ther, the price of 4 times en­ter­prise value/ earn­ings be­fore i nter­est, ta xes, de­pre­ci­a­tion and amor­ti­sa­tion ( EV/ EBITDA) is c heap a nd strength­ens the busi­ness model that aims to see Ad­corp as a global player in re­cruit­ment with a fo­cus on oil and gas.

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