477 replies to this topic

[Bullhunter]

Thanks Bullhunter. Unfortunately, I am not a subscriber to BL premium and cannot read the article. Is there any elaboration on the corruption allegations, or any mention of a pending retraction of these allegations by Amabhungane?

17 AUGUST 2017 

For new EOH boss Zunaid Mayet, who replaced founder Asher Bohbot in May, this year’s precipitous 34% share price plunge is due squarely to bad press.

Mayet is fuming about "defamatory" reports from investigative journalism centre amaBhungane in April that linked EOH insiders — father-and-son team Jehan and Danny Mackay — to Lunga Ncwana, a "shady" middleman in the SA Social Security Agency (Sassa) grants scandal.

"We’ve been very clear in our repudiation of the article and its insinuations," says Mayet, who joined the company in 2009 and headed its industrial technologies division.

"We’ve engaged independent lawyers to come in and do a review [of] the facts in relation to the article. These have been presented to the EOH board and we’re satisfied that there is no truth [in them]. The articles are baseless," he says.

The subscription of R120.00 per month for Business Live is well worth it.

[Spree]

https://www.business...ouble-with-eoh/

Thanks Bullhunter. Unfortunately, I am not a subscriber to BL premium and cannot read the article. Is there any elaboration on the corruption allegations, or any mention of a pending retraction of these allegations by Amabhungane?

[Bullhunter]

The other day on the BdTv program "Stock Watch", Guliata Talevi (the host) mentioned, very briefly, that "Amabhungane" would soon be recanting the allegations that they had made against EOH. However, she did not elaborate on this and has not mentioned this again (as far as I am aware!).

I have not come across even one mention of this anywhere on the web!

If this is true, and a public retraction is made, and considering that Amabhungane seems to be the sole accusers, this should have a massively positive effect on the share price.

As far as I am aware, there is no legal investigation of these allegations by any state law enforcement agencies, nor is anything on the horizon (of course, I could be very wrong!).

If the dark cloud of corruption allegations were lifted, EOH should rerate substantially on the fundamentals ( very healthy cash balance; expected growth of +15% ; increasing sales of own software at higher margins, etc.)

Any thoughts?

https://www.business...ouble-with-eoh/

[Spree]

The other day on the BdTv program "Stock Watch", Guliata Talevi (the host) mentioned, very briefly, that "Amabhungane" would soon be recanting the allegations that they had made against EOH. However, she did not elaborate on this and has not mentioned this again (as far as I am aware!).

I have not come across even one mention of this anywhere on the web!

If this is true, and a public retraction is made, and considering that Amabhungane seems to be the sole accusers, this should have a massively positive effect on the share price.

As far as I am aware, there is no legal investigation of these allegations by any state law enforcement agencies, nor is anything on the horizon (of course, I could be very wrong!).

If the dark cloud of corruption allegations were lifted, EOH should rerate substantially on the fundamentals ( very healthy cash balance; expected growth of +15% ; increasing sales of own software at higher margins, etc.)

Any thoughts?

[Bullhunter]

Analysts from Avior have a 12-month target price of R192 on the stock (more than double its current level), while Prescient reckons it could trade to R162.

 

Mayet and his financial director, John King, seem to share that view, as they’ve been snapping up shares on the open market. While Mayet acknowledges that the prognosis for the SA economy is "lukewarm", he insists the IT sector’s growth prospects are far better.

[Bullhunter]

Now that we've seen the FY numbers, have any of you been persuaded to buy some EOH?

On the surface, the numbers seem pretty decent in the current environment, and management seem confident of, at least, maintaining this level of growth. The PEG is well below 1 (around 0.80), if this growth can be maintained ( big if!).

Or, are the corruption allegations, which have not disappeared (and may never!), posing too big a risk??

Any thoughts are appreciated.

FNB Securities analyst Chantal Marx says: "In SA the IT sector is very interesting because it’s super-fragmented. EOH is the largest market-share holder, but only has 2% market share, so that gives you an idea of what opportunities are still out there."

 

The company is "printing" money, says Marx. Cash generated by operations surged to R1.4bn in the year, from R917m the year before.

 

Marx believes EOH will be able to boost margins as it beds down recent acquisitions. She describes the company’s p:e rating as "crazy" given its expectation that it will grow by 15%-20% over the next five years.

 

https://www.business...-its-mojo-back/

[Spree]

Now that we've seen the FY numbers, have any of you been persuaded to buy some EOH?

On the surface, the numbers seem pretty decent in the current environment, and management seem confident of, at least, maintaining this level of growth. The PEG is well below 1 (around 0.80), if this growth can be maintained ( big if!).

Or, are the corruption allegations, which have not disappeared (and may never!), posing too big a risk??

Any thoughts are appreciated.

[SoleTrader]

EOH out with a trading statement for FY 2017. HEPS expected to be up 10-20% (between 791 cents and 863 cents). Market seems disappointed. Shares down 4% today.

What do you guys think?

Is it a hold, add, or sell??

Or, rather wait for the results and dig deeper into the numbers and, more importantly, the prospects going forward.

sell and switch into Alviva

Sent from my UMI_MAX using Sharenet Sharechat mobile app

[Spree]

EOH out with a trading statement for FY 2017. HEPS expected to be up 10-20% (between 791 cents and 863 cents). Market seems disappointed. Shares down 4% today.

What do you guys think?

Is it a hold, add, or sell??

Or, rather wait for the results and dig deeper into the numbers and, more importantly, the prospects going forward.

[TheConflict]

EOH just bought PowerTech. And their Jan 2017 Fundamentals don't look bad. 

 

http://www.eoh.co.za...resentation.pdf

 

Might well be a good time to get in.

[carlosthejackal]

These r the companies u make money with if you can hold minimum 2 years..

 

PNC did exactly that and now way up..

 

MTN will be next...

 

and then COH!!

 

Markets do not like uncertainty and will knock the **** out of them  very quickly...Give it time and they recover all if not more!!

 

Agree

[Investment novice]

I really liked this company but following Gupta Gate I am very cautious with EOH revenue and there longstanding municipal contracts may come to an end?

there other businesses are also looking shaky.

I think the next 2 years will be tough and not sure if they going to come out of this squeky clean- will wait and see

 

[Spree]

Thanks for the input.

[Scalptrader]

These r the companies u make money with if you can hold minimum 2 years..

 

PNC did exactly that and now way up..

 

MTN will be next...

 

and then COH!!

 

Markets do not like uncertainty and will knock the **** out of them  very quickly...Give it time and they recover all if not more!!

[thedoc]

Wouldn't touch it.

[carlosthejackal]

I took a punt at 101 yesterday, didn't quite get the bottom, target is 120

[Spree]

Does anyone have any thoughts on EOH? Is it a buy at these levels, or is there just too much uncertainty, notwithstanding management's strong rejection of these allegations (do we believe management?).

If this dark cloud disappeared (a big if!), would EOH rerate on the fundamentals, or, has its reputation been damaged irreparably, resulting in a prolonged depressed price/ rating?

Thanks