[TOP STORY] Few ‘true’ tech stocks left on the JSE today

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[LISTEN] Deryck Janse van Rensburg of Anchor Capital mulls over Sanlam’s bid for AfroCentric, as well as Datatec’s trading statement and near-term outlook, on MoneywebNOW with SimonBrown techstocks investing Download the podcast

SIMON BROWN: I’m chatting now with Deryck Janse van Rensburg from Anchor Capital. Deryck, I always appreciate the early mornings. Sanlam made the announcement that they want a controlling stake in AfroCentric.It’s an interesting deal, pitched at R6/share. But they are not looking to delist. They want to get control, but other shareholders can remain. It’s going to make a liquidity issue.

Obviously operating in that medical space, it’s more of a ‘want’ as opposed to a ‘need’ in terms of the potential revenue that could come through over the next two to three years. A nicely-run business I think. Sanlam has obviously put its foot forward and obviously sees through a lot of the difficult period that we are exposed to in markets at the moment.

Datatec – I don’t know how much of a stock it is that you watch. What we don’t have much on the JSE is true sort of tech stocks. There are bits and pieces, there’s EOH, there are a few there. I think what one needs to be mindful of is that Datatec is very much a global business. They don’t operate just in South Africa. So they certainly are exposed to the sort of softer economic environment across all the different geographies that they operate in, particularly in the developed world. So the trading statement [was] a little bit softer. I think it was expected, obviously a little bit of a shock to the share price, but it was going to come through.

 

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