93 replies to this topic

[Nick B]

orca wrote on Wed, 20 February 2013 10:21

What made DTC fall like that in Dec? Dropped back by 6 months. Worth a trade for a 30% gain but I will not add it to my investment portfolio.

Interim Management Statement and Trading Statement

Datatec, ("Datatec" or the "Group", JSE and LSE: DTC), the international Information and
Communications Technology (ICT) group, is today publishing an Interim Management Statement
covering the period from 1 September 2012 to 31 December 2012 ("the Period") and Trading Statement
for the financial year ending 28 February 2013.

The Board now expects the Groups performance for the financial year to be lower than originally
forecast***. Group revenues for the financial year are expected to reach approximately $5.4 billion
(2012: $5.0 billion) including Westcons acquisition of Afina Group in July 2012 and continued revenue
growth in Logicalis. Profit after tax** is expected to be in the range $80 million to $90 million (2012: $89
million).

Underlying* earnings per share are unlikely to reach that of last year, 2012: 47.9 cents, but are expected
to be in excess of 40 US cents. Earnings** and headline earnings** per share are unlikely to reach that
of last year, 2012 earnings* per share: 43.5 cents, 2012 headline earnings** per share: 43.1 cents, but
are expected to be in excess of 35 US cents. The lower end of all the ranges outlined above is more than
20% below the previously published forecasts.

[Noob]

Why is SASOL falling so much today ?

[Nick B]

orca wrote on Wed, 20 February 2013 10:21

What made DTC fall like that in Dec? Dropped back by 6 months. Worth a trade for a 30% gain but I will not add it to my investment portfolio.

"Interim Management Statement and Trading Statement

The Board now expects the Groups performance for the financial year to be lower than originally
forecast***. Group revenues for the financial year are expected to reach approximately $5.4 billion
(2012: $5.0 billion) including Westcons acquisition of Afina Group in July 2012 and continued revenue
growth in Logicalis. Profit after tax** is expected to be in the range $80 million to $90 million (2012: $89
million).

Underlying* earnings per share are unlikely to reach that of last year, 2012: 47.9 cents, but are expected
to be in excess of 40 US cents. Earnings** and headline earnings** per share are unlikely to reach that
of last year, 2012 earnings* per share: 43.5 cents, 2012 headline earnings** per share: 43.1 cents, but
are expected to be in excess of 35 US cents. The lower end of all the ranges outlined above is more than
20% below the previously published forecasts."

[orca]

What made DTC fall like that in Dec? Dropped back by 6 months.
Worth a trade for a 30% gain but I will not add it to my investment portfolio.

[Nick B]

Those who are long will be looking at "1".
Those who short will be looking at "2".

[Moonraker]

Bidvest

A steady performer I have had in my portfolio for several years.
Lately the share price has really been shooting up to reach an all time high yesterday.
They had a trading update yesterday and I would be interested to know which of the HEPS figures the market is looking at. 1 or 2 ?

1. On a normalised basis, excluding the abnormal profit of R399.1 million on the partial
sale of the investment in Mumbai International Airport Private Limited (MIAL) in the
comparative period:
- Headline earnings per share are expected to be between 17% and 19% higher than
the comparative period (December 2011 - 613.4 cents per share); and
- Earnings per share are expected to be between 23% and 25% higher than the
comparative period (December 2011 - 581.8 cents per share).
2. Including the abnormal profit of R399.1 million on the partial sale of the investment in
MIAL in the comparative period:
- Headline earnings per share are expected to be between 1% and 3% lower
(December 2011 - 742.3 cents per share); and
- Earnings per share are expected to be between 1% and 3% higher (December 2011
- 710.8 cents per share)

[Nick B]

I have never looked at Datatec and must admit to being pretty impressed.
Looking at the long term chart, there is a trend line that streches way back and has been tested 7 times nad never broken down through it. Very strong trend line - sweet.
On the short term chart we can see the latest bounce off this trend line at 4600 which is also a horizontal support line - even better.
Everything about this company looks good - PE, divs, growth.
Results are due out in early May.
I am definately looking at this one for a long.
Anyone have any history trading Datatec or have any input?

[Nick B]

DATATEC Short Term Chart

[Nick B]

20 February 2013 - DATATEC

Company DescriptionDatatec Limited is a global provider of information and communication technology (ICT) products, solutions and services with operations in over 50 countries. The Company's activities are global distribution of networking and communication products (Westcon); provision of professional services and information technology (IT) network integration (Logicalis), and strategic and technical telecommunications IT consultancy (Consulting Services). During the fiscal year ended February 29, 2012 (fiscal 2012), it acquired Kommunikations GmbH, Sentronics Security Distributors (Pty) Limited, Inca Software Limited, Netarx LLC, Promon SA, The VIA Group, Inc. and EyeAlike, Inc. On March 12, 2012, it acquired PT Netpoleon. On May 2, 2012, it acquired Corpnet, a provider of IT solutions, including data centre and cloud managed-service solutions. In November 2012, its subsidiary Logicalis acquired the Colombian and Ecuadorian operations of Cibercall S.A.

Fundamentals

Market Cap ZAR 9.30
BEPS Recent Fiscal Year ZAR 3.80
Dividend Yield 3.02%
Profit Margin 0.03%
Return on Investment 10.43%
P/E Ratio 12.8
Dividend per Share ZAR 1.42
Price/Earnings 12.32
Beta 1.31

Broker Ratings
Strong Buy 2
Buy 0
Hold 2
Sell 0
Strong Sell 0

Financials
For the six months ended 31 August 2012, Datatec Ltd. revenues increased 8% to $2.62B. Net income increased 8% to $39.3M. Revenues reflect Westcon segment increase of 6% to $1.9B, Logicalis segment increase of 13% to $682.3M. Net income also reflects Logicalis segment income increase of 31% to $22.6M, Corporate and Other segment loss decrease of 32% to $6.1M, Consulting Services/Analysys Mason Group segment income increase of 78% to $1M.

[Moonraker]

orca wrote on Tue, 19 February 2013 20:09

Yes. Now I understand it. Thanks for that but I don't have a cat. Excellent one Moon.

Not being a chart aficionado I also wasn't sure about the gap thingie. So we have both learnt something new.
Btw. I am indebted to you for CML which I purchased on 20/7/12 @ 28-00 and a bit.

Stay well.

[orca]

Yes. Now I understand it. Thanks for that but I don't have a cat.
Excellent one Moon.

[Moonraker]

orca wrote on Tue, 19 February 2013 09:55

Thanks Moon and Vader for the explanation of a Gap.

[orca]

Whats up for tomorrow Vader? Or should I ask what comes after "A"?
Oh. Arsesore. Sies.

[soutie]

OceanWalz wrote on Tue, 19 February 2013 10:41

think the story is that Brait has a sizable investment in Pepkor and if you think retailers have fallen and may still fall (credit tighter, interest rates can only go up, inflation, fewer workers etc ) then Brait may still be overvalued - but Brait is not 100% Pepkor! but Brait is probably overvalued > R30 - sorry I know this is not what you want to hear.

There's an interesting snippet from Shoprite's results presentation whereby Whitey Basson mentions that there's a cross pollination of sorts happening with Brait's UK investment in frozen food group Iceland.

(copy & paste via moneyweb)

Checkers is now importing products from UK frozen food business Iceland (in which investment holding company Brait has recently bought a significant stake).

P.S. How many are long SHP & from where? I'm in from R170

[Nick B]

OceanWalz wrote on Tue, 19 February 2013 10:41

think the story is that Brait has a sizable investment in Pepkor and if you think retailers have fallen and may still fall (credit tighter, interest rates can only go up, inflation, fewer workers etc ) then Brait may still be overvalued - but Brait is not 100% Pepkor! but Brait is probably overvalued > R30 - sorry I know this is not what you want to hear.

Definately the type of input that I do want to hear. Thanks.
Every bit of info helps us make a better decision.

[OceanWalz]

think the story is that Brait has a sizable investment in Pepkor and if you think retailers have fallen and may still fall (credit tighter, interest rates can only go up, inflation, fewer workers etc ) then Brait may still be overvalued - but Brait is not 100% Pepkor! but Brait is probably overvalued > R30 - sorry I know this is not what you want to hear.

[Nick B]

Still dropping. The key will be the 3200 support level.
We will have to wait and see if it bounces and breaks downwards.
Will be a nice long or short either way.
Let's keep and eye on this one over the next couple of days.

[orca]

Broke through the support line at 3400 with a tiny bounce. Long term buy but has it bottomed yet? Can't say.

[orca]

Thanks Moon and Vader for the explanation of a Gap.

[Nick B]

Brait short term chart.
Brait fell below short term trend line.
This happened after they released their NAV for the quater ending 31 Dec 2012.
Then fell through a long term trend line.
Seems over sold at the moment.
Below MA 20, 50 and 100.
Looks quite interesting - what do you guys see, think, know??