Good value

[analyst]

Hi After Friday's loss, whats are your thoughts for a good pick small cap stock?

[topgun]

Go for SBG - although the shareprice didn't budge with the selloff, which is bullish - profit statement imminent - which should lead to a rerating of the group. If you do not buy make a note of today's price and we can talk again in 6 weeks.

[analyst]

Thanks topgun. Any particluar reason for this pick?

[GdM]

Topgun's right. Fantastic interims, perfectly poised to capitalise off its impressive BEE credentials, growing from a small base. This share really is locked and loaded for upward momentum.

[topgun]

Company is still very undervalued relative to other players in the ICT space eg. GIJ, DDT, etc. with a historic PE of below 10 to May 2007. It has a significant and growing annuity income base within the ICT solutions and information security industry,is a BEE company which makes it well placed for government business and is on the acquisition trail. The ICT industry is also typically a late cycle mover as businesses start to upgrade capacity. Sanlam recently bought 8% of the company - check their unit trusts. Another company that you could consider is ADW. Also note down this price today.

[#6]

I agree with SBG, you may also look ENL as I am expecting it to start climbing now it is showing good profits and the market has not picked up on this.

[analyst]

Thanks guys! I am looking into SBG.