Maseko buys up Telkom shares
Telkom CEO Sipho Maseko has bought 52,520 ordinary Telkom shares with the value of R999,980.80.
Telkom’s shares have made a recovery over the past month, trading at R19.00 on the JSE on Friday morning (12 July 2013) – this after reaching an all-time low of R11.93 on 6 May.
However, despite the share price recovery Irnest Kaplan, MD of Kaplan Equity Analysts believes there are still too many uncertainties in Telkom to start getting too carried away.
In June, Telkom reported a 73.2% decline in headline earnings per share to 87.0 cents in results for the year ended March 2013.
Group operating revenue decreased by 1.7% to R32.501 billion (2012: R33.079 billion).
According to Telkom, for a considerable time the price at which its shares have been trading at has been significantly lower than the net asset value (NAV) of a Telkom share.
On 30 September 2012, the NAV per share was R57, Telkom said.
After the recent impairment charge of R12 billion on its network, Telkom said that the net asset value per Telkom share is R34 – 44% lower than its current trade price.
[This article corrects the number of shares from 52,000 and the value of R990,000.80]
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