Simeka

[#1]

Simeka is still a buy, and it seems the best thing is to hold on to it right now with the hope of a rise. I have overinvested and am unfortunately able to top up after the fall. i bought at 131 and hope it rises - I do not think I will sell within this month unless it starts to rise.

[topgun]

Following the recent acquisition of Premium Ideas, SBG is trading on a rolling forward PE of only 7.3x at 120 cps with annuity income accounting for 50% of revenues. For a quality business with opm's of 15%, this is just too cheap. The Nov. interim result should be published in Jan and we could expect a trading update before then. Its BEE credentials should allow it access to government business for which they have not tendered up to now. Technically, SBG is oversold and is forming a nice base. I expect a sound return on a 3-month view.

[G-UNIT]

so topgun are you saying that Simekas current price levels are its base? and therefore should be buy at current levels and hope for a rise over next 3 months and then sell and hopefully take profits? if so what level do u c simeka reaching in 3 months? R1.50???

[topgun]

I expect SBG to trade back at previous highs early in the new year.