For European tech, it’s been an ongoing concern that the world’s third-largest economy hasn’t had a flag-bearing consumer tech giant in the league of Apple, Google or Amazon. Now it going to get one. Sort of. For SA, it’s been an astounding accomplishment that it has a company of that stature. Now it’s going to lose it. Sort of.
For Sgourdos the key to the problem is that Naspers now constitutes almost 25% of the entire JSE, which is, for all kinds of reasons, a ceiling level. So whenever it rises to around that level, local investment funds tend to sell the share not necessarily because they want to, but because they have to for diversification reasons.
However, it should also be noted that Nasdaq has a much higher average stock value, so it’s possible that Naspers is giving up some potential here. For example, Tencent, in some ways the measure of Naspers, trades on about 36-times annual earnings, compared to Naspers which trades on about 32-times annual earnings. This price/earnings ratio, or P/E, is even higher in the case of Nasdaq listed Amazon which trades at 64-times annual earnings.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Singapore Singapore Latest News, Singapore Singapore Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
BUSINESS MAVERICK: Take more savings offshore, money managers urge SA investorsIncreasingly, financial advisers are recommending that SA investors take as much of their discretionary investments out of the country as they can. But is taking 100% of your investment income out of the country sensible, never mind unpatriotic?
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK : China and the US: Xi and Trump miss their chance for meaningful trade reformsWhile Chinese President Xi Jinping appears to care only about maintaining political control, US President Donald Trump seems to care only about himself.
Source: dailymaverick - 🏆 3. / 84 Read more »
MAVERICK BUSINESS: The Purple Cow’s basic income plan is either genius or a bovine pattyThe Negative Income Tax, says the Capitalist Party of South Africa’s Kanthan Pillay, ‘is our riposte to the constant clamour for the Basic Income Grant’. It is a proposal, he says, to conquer unemployment, especially in the light of the effect on jobs of the Fourth Industrial Revolution. Unemployment too high for it to be viable 😕
Source: dailymaverick - 🏆 3. / 84 Read more »
BUSINESS MAVERICK OP-ED: Why do financial markets overreact to bad news?We live in the era of the 24-hour news cycle. Corporate issues make the headlines and then rumbleon and on, taking new turns and causing more damage as company responses are analysed in minute detail. Sometimes, major incidents beget huge crises where significant investor responses are justified. In others, we often get the feeling that markets go over the top.
Source: dailymaverick - 🏆 3. / 84 Read more »
MAVERICK BUSINESS ANALYSIS: South Africa’s enterprise sector critically illThe parlous state of the enterprise sector in SA can be seen in dismal company income tax receipts over the past five years, which are declining and very heavily weighted in favour of large companies. The decline in profitability means 74% of all companies pay no tax at all and the vast majority of company tax receipts come from just 0.09% of SA’s corporates.
Source: dailymaverick - 🏆 3. / 84 Read more »