The Chief executive has been buying and buying while this share continued to drop drastically. Is AndrT de Ruyter extremely ambitious or is there something possibly waiting to happen??? Even if not...This Share seems cheap? any opinions???
The share price for Nampak will increase gradually. Nampak produced a good set of result with Volume growth in most of their products. The Market took a rather bias approach in punishing Nampak due to their Nigeria restriction. With oil price on the rise , and with the latest inflow of forex into Nigeria (MTN deal), there is some hope. I am a buyer of this stock and over time it should repay you handsomely.
If one looks back at price history Share Price was at current level in Oct 1995 - that is 21 years and no growth. Please tell me there was a share split along the way? I am personally waiting for pullback to around R12 which was tested in Nov 2000, Apr 2003, Mar 2009 as I entered MTN too early and had to average down and that was not a life enhancing experience. I will rather be patient and wait for R12, especially as dividend cut and potential cash flow issues with money tied up in Nigeria / Angola.
large mature commodity item company with no discernible brand and heavily dependent on consumer led economic growth to perform. Add huge debt to the equation. Now consider that, like all consumer products, the only viable strategy for growth is export. But you can't export packaging - you have to either set up shop in a new country or acquire. They have had enough time now to get their Nigerian projects going. Failing that - it is tickets for NPK, in my opinion.
Probably the opposite, in fact! NAMPAK's appeal is in the margins available to her as the only real operator on the African continent. She partners with big operators - Coke, Heinz, SAB and makes money. Unfortunately - there is a good reason she has no real competition on this benighted continent.
In theory - she could use the money trapped in these countries to expand her operations there... much like Microsoft who can't take her money home to the USA (admittedly for different reasons though.) Given that her customers are in the same boat - NPK could even exchange notes or pref shares with her primary customers or even take partial payment outside the country. She could still be an interesting story going forward.