Pinnacle turns over a new leaf
Alviva (JSE code: AVV) is the new name for Pinnacle and the company seems to be back on track after a tough three years. During this time, its share price collapsed after criminal charges were laid against one of its executives, but these were ultimately withdrawn. Gross profit doubled, although headline earnings per share (HEPS) were only up 12.8% as several issues (such as currency losses rather than gains) worked against it. But the business is back on track, Datacentrix is doing well and it is generating cash. On a historic price-toearnings ratio (P/E) of only around 10 times it is looking cheap. The share is still below the highs of over 2 400c in 2014. So, three years later we now have a better price and arguably a better business.