Now I see Esor has formed a partnership with Calgro M3 for low cost housing. Calgo has had great success here (see their share price) and I think it is a good strategic move for Esor. The results were also released and were as expected. I think it is time to stop the panic and put your shares at the bottom of your drawer and watch the action. I see the share price is also going in the right direction. I am positive as always!
Prehaps a little desparate, but huge upside for Esor surely? No huge financial commitment. Over a billion in turnover on a project that will have to repeat itself several times to even come close to helping on the low cost housing demand side. Calgro obviously sees upside or why would they get involved? No doubt Esor is strugling, but I think this is a great step towards surviving and thriving into the future. As always, time will tell.....
I really don't think Esor has the money to tackle that project alone. If you like Calgro M3 and they partner up for this housing project with several more to come, don't you think giving away half of this business to Calgro is a good strategic move on Esor's side? Always partner up with a winner with good historical results in the field you want to be in. I also went through the year-end results. Without the loss-making contracts, Esor would have had HEPS of 10.1 cents per share. Not trying to justify my decision to hold onto my Shares Simon, just saying......
Hehehehe! I like that name story. Are you of the opinion that the company has zero chance of survival or just really negative of their chances? I do have a pretty big holding here and am prehaps a bit too confident, but without loss making contracts the next year, they should show some sort of profit. Even HEPS of 6 cents putting the company pesimistically on a PE of 6 should give a share price of close to 40 cents?
Hey Simon. I can't dispute logic. I just feel the Calgro deal is actually good news in the long run. Giving away R500 million now to survive and gain billions of contractual work in the future not to mention getting into bed with a partner boasting an extremely successful history in this exact field. I know loss making projects are always a possibility, but I can only hope they are more careful with future contracts. I have 700 000 shares and paid a lot more than current share price! I guess I will just wave my optimistic flag and face north. Selling now and pulling out R175k seems like a hasty retreat, but sometimes I think this might be wise? Thank you for the communication. Always good to get a look at shares from another angle. One day we can discuss my Murray and Roberts holding!
Newbie, if you look at the live action, the sellers are falling over themselves right now. They may push the price further down to offload and if you join them with 700000 that might guarantee it. On the other hand once they get out, there are still buyers even if fewer and if the price starts to tick up that can stimulate interest to push it higher. To me Esor is on my gamble list and I have taken a chunk as that but I accept they are dangerously cash strapped and that could be their sinker. Not sure to what extent Vunani are bank rolling them!
Hey there. I think the same as you. If they survive, from this price the could become a 10 bagger. Optimisimn rules. I follow this share closely, so If I get any info I will be sure to pass it on to you.