Simon’s stock tips A GLOBAL PLAYER
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.