EOH has been dogged by many allegations and it’s share price is down from its 2015 high of R180 to R18.11 at yesterday’s close. 

This has resulted in EOH’s share price dropping to around its net tangible asset value of R17.07 (FY2018), the NTAV should drop to round R15.00 per share in its interims due out later this month. 

Investors looking for a speculative investment that could deliver outsized gains over the next few years should consider allocating capital to EOH at these levels. You have a massive margin of safety, the NAV (including goodwill and trademarks etc) was R53.20 per share in FY 2018. 

Its market cap is currently just under R3.2 billion, normalized revenue was in excess of R16 billion, normalized EBITDA of R1,77 billion and normalized operating profit of R1.18 billion.   

The new CEO Stephen van Coller should deliver on his turn around strategy and streamline the business. A trading statement should be released in the next week or so to update the market on earnings and profits for the interim period to January 2019. 

Risk averse investors should try buy dips below R17.00, while long term investors, happy to ride out share price volatility, should buy at market.  

Buy EOH below R18.50 for long term growth. 

The week ahead: 


Other Economic data releases of interest…