Article from MoneyWeb MTN overvalued - Imtiaz Ahmed The group expects earnings to grow 38-43% but other risks lurk beneath the surface. Chris Buchanan 23 February 2009 18:12 Imtiaz Ahmed, of Macquarie First South believes despite the 6% increase in MTN's (JSE:MTN) share price Monday, following its trading update on Friday, the company is over priced for a number of reasons. Firstly, analysts were expecting higher numbers and secondly any company exposed to emerging markets is being down rated. He said in this market environment he didn't expect MTN to get much above R105 or R110. In contrast Ahmed said Tongaat Hulett is one of the few companies that has a reasonably good outlook and that the results were exceptionally good. One year out, with the current rand exchange rate and the sugar price, earnings should hold up and both it and Illovo are companies he's holding on to. Another exceptional performer, although with more of a murky outlook, is Wilson Bayly Holmes (WBHO). He said the balance sheet was very strong with over R3bn in cash. He added that the froth had come out of the construction sector and the share at half of its value since September, made it attractive, although he cautions that you shouldn't rush into it. African Rainbow Minerals reported a remarkable set of interim results but Ahmed wasn't taken in, saying the numbers will halve because the strong performer in iron ore will not do well for the company as contracts are being renewed. His opinion is to stay clear of this one.