Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

ELI hold or sell

Reply
SKALA
Super Contributor
I am disapointed with the non performance lately of ELI and then the rights issue at R2. I am sitting on just over 20% profit, having bought in Aug 09. Was expecting it to be much higher by now and seems to be seriously running out of steam. So is it perhaps time to take the profit and wait for next opportunity?
0 Kudos
6 REPLIES 6
Not applicable
Im holding - they have yet to launch the new set top box thingys and the new appliance division could add a new dimension to the share as well as the aquasition of megatron... good things to come I reckon.
0 Kudos
SKALA
Super Contributor
Hi TZ; you been very quiet. Ja, expansion plans, but no funds. Also the gov may not give Altech the set top box contracts and elec appliances will have competition. But thanks for your view.
0 Kudos
Not applicable
The problem with selling ELI, is that it will be difficult to get back in again. It is a very thinly traded share, with a big spread between bid & ask. If you have a long term positive view on this stock, then rather hang onto it, IMO
0 Kudos
SKALA
Super Contributor
Thanks for your view. Long term (12 months min) should do well, provided they get the contact to provide set top boxes, but since neither they nor Altech are black owned or ANC controlled, I think their chances of getting supply contracts are very reduced. There will be "funny companies" tendering with all the right connections.
0 Kudos
Not applicable
On the other hand we could probably look forward to more power cuts in future until eishkom gets there act together and ELI already has a big demand from their client base hence the megatron deal. and as far as appliance goes it should slot in rather nicely as the large dealer network is already in place. as for the altech deal time will tell but be a huge windfall if it does. and with more and more people upgrading to HD and the possibility of a new pay tv to be launched there should be lots too look forward too.omo
0 Kudos
Not applicable
Nah, you got ellies wrong, they are distributors for the settop boxes - that is a whole different ball game, and a very overlooked industry. You can manufacture all you want, like Altech, but someone has to move your boxes for you, and this is Ellies value proposition. Distribution is a difficult business to get into, with high barriers to entry, because your relationships have to be established with a multitude of stores. Ask anyone who has tried to get into the import export business! Check out Nuworld, if you want to see a comparable company
0 Kudos