{"id":41861,"date":"2013-07-12T10:22:25","date_gmt":"2013-07-12T08:22:25","guid":{"rendered":"http:\/\/businesstech.co.za\/news\/?p=41861"},"modified":"2013-07-12T12:20:21","modified_gmt":"2013-07-12T10:20:21","slug":"telkom-market-cap-hits-r10-billion","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/telecommunications\/41861\/telkom-market-cap-hits-r10-billion\/","title":{"rendered":"Telkom market cap hits R10 billion"},"content":{"rendered":"

Shares in Telkom<\/a> closed in on R20 in morning trade on the JSE on Friday (12 July), having gained in excess of 61% since its lowest trade level of R11.93 (intraday R11.34) in May.<\/p>\n

On Friday Telkom CEO Sipho Maseko<\/a> has bought 52,520 ordinary Telkom shares with the value of just under R1 million (R999,980.80).<\/p>\n

In morning trade on the local bourse, Telkom added 1.37% to R19.26, moving its market cap past R10 billion (R10.03 billion), having fallen to\u00a0R6.2 billion on 6 May.<\/p>\n

Investor opinion on the future of the company is divided with Irnest Kaplan<\/a>, MD of Kaplan Equity Analysts<\/a> noting that the group\u2019s shares have been undervalued for some time.<\/p>\n

\u201cIt is fair to say that Telkom\u2019s share has been largely undervalued for some time. Arguably, it\u2019s dropped too much,\u201d the analyst opined.<\/p>\n

He pointed to a recent change in the board and top management of the company as a potential catalyst for change at the group.<\/p>\n

However, the analyst said he didn\u2019t think that the company would climb to much more in a short period of time.<\/p>\n

\u201cIt\u2019s not going to be a darling,\u201d Kaplan said. \u201cThere are just too many unknowns, it\u2019s still difficult to call. There needs to be more clarity before one can take a long term view on Telkom.\u201d<\/p>\n

Other investors have said they would like to see delivery from the company before buying into the stock.<\/p>\n

\u201cThe only thing that\u2019s really in favour of the stock right now is that it\u2019s trading at probably a 50% discount to the NAV, which management now claim it to be R34. It\u2019s probably trading at a massive discount to that,\u201d said Gryphon Asset Management portfolio manager,\u00a0Reuben Beelders<\/a> recently.<\/p>\n

Last month, Telkom reported a 73.2% decline in headline earnings per share to 87.0 cents in results for the year ended March 2013.<\/p>\n

Group operating revenue decreased by 1.7% to R32.501 billion (2012: R33.079 billion).<\/p>\n

Telkom\u2019s board also took the decision to impair the carrying value of the assets of the group by R12 billion for the year ended 31 March 2013, giving the group a net asset value is R34 per share.<\/p>\n

More on Telkom<\/h3>\n

Maseko buys up Telkom shares<\/strong><\/a><\/p>\n

Telkom is no darling: analyst<\/a><\/strong><\/p>\n

Telkom a re-run of the same movie: Analyst<\/strong><\/a><\/p>\n

Telkom earnings sink\u00a0<\/strong><\/a><\/p>\n

Sipho Maseko the new Telkom CEO<\/strong><\/a><\/p>\n

Telkom impairs R12 billion in assets<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Shares in Telkom closed in on R20 in morning trade on the JSE on Friday, having gained in excess of 61% since its lowest trade level of R11.93 in early May.<\/p>\n","protected":false},"author":10,"featured_media":26584,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[26,1529,6074,2414,65],"class_list":["post-41861","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-telecommunications","tag-headline","tag-irnest-kaplan","tag-reuben-beelders","tag-sipho-maseko","tag-telkom"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/41861","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=41861"}],"version-history":[{"count":9,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/41861\/revisions"}],"predecessor-version":[{"id":41875,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/41861\/revisions\/41875"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/26584"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=41861"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=41861"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=41861"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}