Trading way below it's NAV

[#1]

Faritec (FRT) is currently trading at 30cps, which represents a PE of 2.65 and a market cap of just over R77 million. This is from a company that has turnover in excess of R1 billion and that deliver profit before tax of nearly R58 million. The company saw gross margins increase from 22.6% to 24.9% and operating margin's from 3% to 5.3%. Furthermore the company had a NAV of 71,4cps for the period to June 2008. Surely, this company must be showing value. The company has a good presence in Gauteng and the Western-Cape and is aggressively on the look out for acquisitions in KwaZulu-Natal. The company will also open new offices, and add staff and resources to its existing offices in Durban. Faritec believes that it has experience in delivering solutions to local and provincial government customers, and believes technology solutions can play a significant role in helping government achieve its objectives. The company hopes to leverage its nationwide strengths in the public sector to expand its offering to local government entities in KZN. Although there is a general slow-down in spending, businesses tend to ensure that they remain competitive and often spend on hardware and software to improve efficiency. We maintain that FRT is an excellent BUY at current prices. Quotation from www.sharetips.co.za

[Blik]

Howzit AVI - good post. I know minimal about Faritec - but just a question or two. In the IT services provision field - do they have a competetive advantage over other companies - I assume they compete with Didata etc. Also their short term liabilities are quite high - over 300 million I think. I'll certanly add to watch list. It would be nice to see what the TA says about this share.