Pinnacle Technology shares boosted by update

Shares in JSE-listed ICT products provider, Pinnacle Technology Holdings (PNC) gained 30 cents, or 2.36%, to R13.00 in midday trade on Wednesday after the group announced that it expected H1 earnings to be 45% higher than the corresponding period.

A local dealer at PSG Konsult said that if the group’s results could be repeated over the next six months, it would be seen as an attractive prospect for investors.

Pinnacle advised late Tuesday that for the six months ended 31 December 2011 its headline earnings are projected to be at least 45% higher than the results of the comparative period last year.

The resulting headline earnings per share are projected to be not less than 75 cents per share, which is at least 56% higher than the results of the comparative period (31 December 2010: 48 cents per share).

Earnings per share are also projected to be at least 75 cents per share, being at least 56% higher than the results of the comparative period (31 December 2010: 48 cents per share).

The company said it expected to publish results in mid-March.

In other tech stocks, Mustek (MST), a distributor of Mecer and other hardware, declined 20 cents or 3.36% to R5.75, with the dealer citing a lack of liquidity for the drop. “There is a big spread between buyers and sellers,” said Mustek.

In November, Mustek announced a marginal rise in revenue to R3.5 billion, with EBITDA up to R179 million. The group announced a dividend per share of 17 cents.

IT company, Gijima Group (GIJ) declined to 60 cents or 1.64%, having fallen 6% on Monday after a media report claimed that the public protector was set to launch an investigation into the transparency of the R2.3 billion “Who Am I Online” (WAIO) contract awarded to the group by the Department of Home Affairs.

According to City Press, Public Protector Thuli Madonsela appointed a team of investigators to probe the project which was originally awarded for R1.9 billion in 2007, and escalated to R4.5 billion before being canned by the Department of Home Affairs in 2010.