Pin­na­cle turns over a new leaf

Finweek English Edition - - MARKET PLACE -

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.

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