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Online Share Trading

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Worth a look?

Reply
MCB
Occasional Contributor
Surely the results warranted some trades today? Looks like a solid company. PE's not expensive. Strong balance sheet with management providing tangible evidence of expanding the company during 2012 H1. Good revenue growth which should feed through more effectively H2 now with Eurolux acquisition complete. Additional cautionery hinting at further acquisitive growth. No-one interested?
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8 REPLIES 8
Not applicable
It seems to have the same problem BELL has (posted by another forum user). If you look at the volumes traded historically, it's not one of the most liquid shares available (can clearly see this using the Price History option available). That been said, it doesn't mean that it's not a good share. You'll probably find that it is worth more than the current price but trading at a discount due to the liquidity issue highlighted above.
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Not applicable
Never looked at this before - but at a quick glance, it is my kind of company, no debt, good cashflow. But the drawback is no growth either. Topline hasn't grown since 2007, so that would imply a fairly mature market they operate in. Growth will come from margin improvement (Which has a bit of room to improve - I guess you could benchmark against Altron's operations, minus Bytes and Altech). So the investment case into ARB lies in the belief that management can do something about that impressive balance sheet and invest wisely into reciprocal markets. I think the institutions are probably going to want to see what they can do with their recent acquisition, and will want to see what else is in the pipeline. But on my watchlist for sure!
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SimonPB
Valued Contributor
Eurolux looks good and they still got cash to spend .. infrastructure spend will help them .. Interviewed CEO yesterday morn, not published yet but you can find it at http://maudestreet.squarespace.com/storage/jsedirect-individual/2012/feb/JSEDirect_ARB_20120215.mp3
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AJT
Super Contributor
question is, are you a buyer at these levels?
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SimonPB
Valued Contributor
I can't before interview published next Wednesday .. will dig deeper and decide by then ..
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topgun
Super Contributor
At the current 370cps shareprice, the rolling 12-month forward PE is some 10x if net cash of 68cps is stripped out. Further acquisitions (the co. is trading under cautionary) should lift the anaemic growth rate as will a more favourable macro environment. Certainly one to watch - good cash generation, strong b/s, able management - but no urgency to invest given current metrics and a 3.3% divi yield. Omo
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prancing_horse
Super Contributor
One of my better picks showing 83% return (excl divs) in a fraction over 2 years, unfortunately it only covers for BWI the dog in my long term portfolio,holding onto the latter in the hope a little recovery is not too far away. Something I think we all have, winners and losers
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superstar
Regular Contributor
THe stock was one of the small caps punt in the Finweek last year, yes a lot could have changed since then but those changes are pointing the stock towards North
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