Where To For Phumelela?

With financials from Phumelela imminent it might be appropriate to speculate on where this group is headed.

If you have held this share for the last 5 years ( a not unreasonable period for assessment ) you will have lost 35% of your capital value. Adjust this figure for inflation and you can just about double that loss.

Optimists will argue ( quite correctly ) that the dividend has been good. OK - so let's forget about the inflation adjustment as a compromise and leave the figure at a 35% loss.

Chief historical contributor to the ongoing loss is the albatross called South African Racing. One wonders whether the latest figures will reflect any change in this situation.

Given that Phumelela has been successful in its offshore activities one is tempted to ask the following :

Why not unbundle the local product and become a focused offshore service provider?

There must surely be a workable solution for selling off ( or licensing ) competitors to run the show day-today?

The individuals driving this group don't strike me as the types likely to be forever comfortable with losses. Nor should shareholders be. But this share has slowly morphed into something of an ailing dog - unfortunately rather accurately reflecting the sport as it operates locally.

Are Phum not striving to get an online gaming license (Casino, poker et al) ?

Imvho you buy this share short term as a speculation ( not for me at this point) or buy it for its dividend yield. It has precious little growth other then inflation ( not even guaranteed in current environment). She is like Tiger's new girlfriend. On a scale of 1 to 10 I would give her one. Widows and orphans stock.

Now for Steinhoff.

I believe the reason for the disappointing sales of their furniture in Eastern Europe is due to the population of those countries having moved to UK to be on social security !!!!!!