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 The Sharenet Daily 
Thursday, 19 April 2012 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

PSG ? More than the Sum of its Parts?

PSG Group Ltd released its annual results for the financial year ended 29 February 2012 on Monday, once again reporting some strong numbers and hinting at promising opportunities for further growth on the horizon.

PSG Group is an investment holding company with stakes in 39 underlying investments, including three companies separately listed on the JSE. PSG has its roots in financial services and as a result has a large exposure to the financial services, retail banking, and private equity sectors, but recently also ventured into agriculture and education. The company’s market capitalisation currently stands at approximately R 9.5bn.

Recurring headline earnings per share improved by 27.6% to 308.6 cents per share, while the dividend for the year increased by 22.4% to 82 cents per share. The Sum-Of-The-Parts (SOTP) value per share, which is explained below, has increased by 19.4% to R 55.92.

By the nature of its business, which is purchasing companies and unlocking their intrinsic value, it is unlikely that PSG will ever have a massive dividend yield and more likely that it will instead aim to reinvest as much of its profits as possible into new investment opportunities. Therefore, an essential valuation tool to value PSG is the Sum-Of-The-Parts (SOTP) value per share. The SOTP value per share metric looks through to an investment company’s underlying holdings and then calculates what the share should be worth in the market, based solely on the underlying holdings.

An extract from PSG’s financial statements shows the contribution of the underlying investments to PSG’s asset value and SOTP value per share:

Source: www.psggroup.co.za

PSG has also issued an updated SOTP value per share of R 61.66 as of 4 April 2012, which amounts to a further increase of 10.26%. The share price currently hovers around the R 53 - R 55 range, indicating a discount to SOTP. From the graph below it can be seen that the share price remains relatively close to the SOTP over time, although a discount has been in place for the past three years or so:

Source: www.psggroup.co.za

We will now have a brief look at the performance of two of PSG’s underlying investments that are also listed separately on the JSE, namely Capitec Bank and Curro Holdings.

Capitec Bank (32.5% Holding)

Capitec has taken the lower income market in the retail banking sector by storm, and has grown rapidly to a point where it currently employs over 7,000 people, has 3.7m active clients and a market capitalisation in excess of R20bn.

Capitec have delivered a return of 29% on ordinary shareholder’s equity, which is slightly lower than 2011’s figure of 35%. Understandably such high RoE figures are difficult to maintain in an environment where other banks are trying their utmost to capture a share of the lower income market. Capitec achieved headline earnings of R 1.08bn for the financial year, with headline earnings per share increasing by 49% to R 11.25.

Capitec is vitally important to PSG’s future success as it comprises 50% of PSG’s asset value. PSG CEO Piet Mouton attributes much of Capitec’s phenomenal growth to their management team, which has been in place since the company’s listing. He further displays confidence in their ability to grow the business’ client basis even further and to remain profitable going forward.

Curro Holdings (63.1% Holding)

Curro Holdings comprises about 9% of PSG’s asset value, and has enjoyed a lot of media attention since listing on the JSE AltX in June 2011. The excitement among PSG enthusiasts can be attributed to the company’s interesting business model of developing, acquiring, and managing private schools in South Africa, as well as the believed upside potential waiting to be unlocked.

Curro has expanded its number of schools countrywide from 3 to 16 since 2009, while the number of learners has increased from 2,000 to over 10,500 at present. This expansion came at quite a cost, with R 142m spent on the development of four new school campuses and a further R 80m to upgrade and expand their existing schools. As a result of all this capital expenditure, Curro reported a headline loss of R 7.5m for the financial year ending 31 December 2011, compared to a profit of R 5.2m reported for the previous year.

PSG cautions that Curro is still in its capital expenditure phase, which will be costly and capital intensive over the short to medium term. However, management believes that their long term growth strategy will unfold with very favourable results once the foundations are in place.

PSG has been a brilliant performer over the years, and has a strong management team in place, but as we mentioned last week one needs to ensure that a good company remains a good investment before making a capital allocation.

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Kind Regards,

Cor van Deventer
021 9144 966

Thu, 19 Apr 2012
Top News
Companies betting on Africa's growing affluence are being forced to come up with clever ways of doing business to get around the continent's dilapidated roads, shaky power supply and inept ports.  Full story

There is a lot of hype and excitement around Africa as the next hot spot for global investors but what they are quickly learning is that acquisitions do not come cheap.  Full story
India successfully test-fired on Thursday a nuclear-capable missile that can reach Beijing and Eastern Europe, thrusting the emerging Asian power into a small club of nations that can deploy nuclear weapons at such a great distance.  Full story
Sudan's President Omar Hassan al-Bashir all but declared war against his newly independent neighbour on Thursday, vowing to teach South Sudan a "final lesson by force" after it occupied a disputed oil field.  Full story
More than 20 bombs hit cities and towns across Iraq on Thursday, killing at least 36 and wounding almost 150, police and hospital sources said, raising fears of sectarian strife in a country whose authorities are keen to show they can now maintain security.  Full story
Britain's blue-chip share index closed flat on Thursday, as banks gave up gains after rising yields at a Spanish debt auction unnerved investors,. . .  Full story
European equity markets sold off on Thursday as a string of downbeat corporate outlooks and weak U.S. data dampened expectations of an earnings. . .  Full story
U.S. stocks dipped in choppy trade on Thursday as investors grappled with uncertainty in the euro zone, a raft of corporate earnings and. . .  Full story
Global stocks traded near break-even and government debt prices rose o n T hursday despite solid demand for Spanish bonds as investors remained. . .  Full story

European equity markets sold off on Thursday as a string of downbeat corporate outlooks and weak U.S. data dampened expectations of an earnings. . .  Full story
Gold rose back above $1,640 an ounce on Thursday, recovering from an earlier dip that took the metal to its weakest in 10. . .  Full story
European equity markets extended losses on Thursday after weaker-than-expected U.S. data on business conditions and housing sales.. . .  Full story
U.S. stocks opened flat on Thursday as a weak reading on the labor market and rumors of a French sovereign debt downgrade offset. . .  Full story
SA Business
South African stocks ticked up on Thursday for a third day running, boosted by solid demand at a Spanish bond sale. . .  Full story
Nakumatt, Kenya's largest retailer, plans to expand across Africa by focusing on opening stores in more eastern Africa countries over the. . .  Full story
Kenya's top telecoms operator Safaricom will lay a fibre-optic cable network to offer faster and more efficient Internet data services in. . .  Full story
Europe's top shares gained on Thursday as Spain prepared to test investors appetite for risk at its auction of two- and. . .  Full story

Pan-African lender United Bank for Africa is in talks with billionaire industrialist Aliko Dangote, Africa's richest man, for a partnership to. . .  Full story
Pan-African lender Ecobank Transnational will sell a 19.58 percent stake in its shares to South Africa's Public Investment Corporation (PIC) for. . .  Full story
International Monetary Fund chief Christine Lagarde said on Thursday she expects to win a big boost in funding to help the lender safeguard. . .  Full story
Canadian miner First Uranium Corp's fourth-quarter gold sales fell 15 percent from the prior quarter as workforce reduction at its Ezulwini. . .  Full story

New domestically-owned mobile operator Cafe Mobile has launched services in Ivory Coast, becoming the West African nation's sixth operator, the company's president said.. . .  Full story
Company News
Shareholders are advised that the Liberty Holdings notice of AGM has been posted to its shareholders who were recorded as such. . .  Full story
At Ezulwini Mine, a total of 8,061 ounces of gold was sold in Q4 2012, compared to 13,406 ounces of gold. . .  Full story
Shareholders are advised that the company's annual financial statements for the year ended 31 December 2011, are available on the company's. . .  Full story
Textainer announced that Textainer Marine Containers Ltd. ("TMCL"), Textainer's primary asset owning subsidiary, closed its offering of USD400 million in aggregate. . .  Full story

Anglo released its interim management statement for the first quarter ended 31 March 2012. Highlights include: * All three strategic growth projects delivered in 2011 are ramping up well, achieving between. . .  Full story
Highlights for the march 2012 quarter: *Equivalent refined platinum production up 5% year on year and 2% quarter on quarter to 593 koz *Mogalakwena's head grade increased 5% year on year and. . .  Full story
Kumba released its production and sales report for the quarter ended 31 March 2012. Throughout this report, production and sales volumes referred to are 100%, attributable to shareholders of Kumba as. . .  Full story
Company Results
Turnover increased by 8.1% to R55.3 billion (R51.2 billion). Gross profit rose to R10 billion (R9.1 billion), but trading profit declined. . .  Full story
Headline earnings for the year decreased to R365.5 million (2011: R423.4 million), while headline earnings per share from continuing operations lowered. . .  Full story
Income was up by 2% to R451.7 million (R443.4 million). Net attributable profit rose by 11% to R35.6 million (R32 million).. . .  Full story
Revenue for the interim period ended 29 February 2012 jumped to R2.7 billion (2011: R1.9 billion). Gross profit soared to R938.1. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0034106.9256.680.17%
JSE Top 4017:0030110.7267.490.22%
JSE Gold17:002236.59-.56-0.03%
JSE Financial17:0024945.88-58.58-0.23%
JSE Industrial17:0038486.4773.530.19%
JSE Indust 2517:0032361.4083.430.26%
JSE Resource17:0049666.85196.130.40%
DJ Futures19:4012910.00-55.00-0.42%
DJ Ind19:4512969.25-63.50-0.49%
SP 50020:001378.60-6.54-0.47%
FTSE 10017:355744.55-.74-0.01%
All Ords08:534441.3014.100.32%
NZSE 5007:323524.521.760.05%
NameTimeRPMove% Move
Gold/R kg20:00414034-325-0.08%
Brent Crude19:56117.38-.15-0.13%
Rand / Dollar19:597.85950.02130.27%
Rand / Pound19:5512.58090.05700.46%
Rand / Euro19:5510.31080.02880.28%
Rand / NZD19:586.39550.00010.00%
Rand / AUD19:558.1193-0.0017-0.02%
Yen / Dollar19:5981.47000.21300.26%
Euro / Dollar19:550.7617-0.0003-0.04%
Dollar / Euro19:591.31190.00030.02%
Pound / Dollar19:550.6228-0.0012-0.19%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 WITSGOLD  42002005.00.%2951
2 TRNSHEX  279114.10.%97561
3 PHUMELELA  1085343.24.%200
4 ADAPTIT  10432.97.%26000
5 JDGROUP  49751352.79.%806262
6 URONE  2370602.60.%81519
7 CALGRO  410102.50.%30326
8 PSG  56001232.25.%102202
9 METAIR  2715552.07.%260097
10 OCTODEC  1611311.96.%31165
11 GRANPRADE  26051.96.%58194
12 ALTECH  5325991.89.%49724
13 BATS  405946941.74.%575304
14 MEDCLIN  3831651.73.%469243
15 SUNINT  80171361.73.%92550
16 MUSTEK  600101.69.%67001
17 PETMIN  31051.64.%211665
18 AQUARIUS  1743281.63.%71420
19 MTN  134901901.43.%6108457
20 REINET  1432201.42.%1827343

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Major Moves Down
SharenameSaleMove% MoveVolume
1 DORBYL  123-35-22.15.%1000
2 DELTA  705-79-10.08.%850
3 DELRAND  250-25-9.09.%111701
4 AFGRI  511-48-8.59.%146160
5 WINHOLD  110-8-6.78.%20000
6 VILLAGE  146-9-5.81.%6703829
7 EXCELL  135-5-3.57.%117749
8 RAINBOW  1429-50-3.38.%66751
9 FAIRVEST  112-3-2.61.%116450
10 BARWORLD  9470-250-2.57.%1006364
11 TSOGO-SUN  1740-45-2.52.%888317
12 WILDRNESS  410-10-2.38.%2467
13 STEFSTOCK  1108-26-2.29.%104521
14 TFG  12294-275-2.19.%579568
15 PERGRIN  1080-21-1.91.%65826
16 JUBILEE  159-3-1.85.%36127
17 DIGICOR  300-5-1.64.%90332
18 CIPLAMED  669-11-1.62.%714835
19 EOH  3310-53-1.58.%159021
20 MRHLD  2756-44-1.57.%2487880

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New Highs
SharenameSaleHighMove% MoveVolume
1 PSG  560056401232.25.%102202
2 METAIR  27152800552.07.%260097
3 BATS  40594406526941.74.%575304
4 BRAIT  22952320291.28.%813740
5 SABMILLER  32917330193120.96.%3437304
6 DISCOVERY  51945220430.83.%648881
7 MRPRICE  1013510162350.35.%996286
8 INVPROP  116713700.103630
9 AMA  3553800.102446
10 TRENCOR  45564710-2-0.04.%85578
11 TIGBRANDS  2773427999-16-0.06.%638986
12 A-V-I  47444775-5-0.11.%1350205
13 SPAR  1195012094-50-0.42.%172397
14 RMIH  17981825-11-0.61.%1188246
15 LIFEHC  26022628-16-0.61.%2547845
16 IMPERIAL  1668016982-120-0.71.%517687
17 NASPERSN  4564146440-385-0.84.%1339935
18 CAPITEC  2160022199-285-1.30.%75102

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New Lows
SharenameSaleLowMove% MoveVolume
1 IMPLATS  1465014533-178-1.20.%2738040
2 ANGLOPLAT  5000049740-500-0.99.%405188

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Index Summary
Index NameRPMove% Move
Top 4030,110.7267.490.22%
Mid Cap48,833.09-50.78-0.10%
Small Cap36,110.72-49.32-0.14%
Resource 2049,666.85196.130.40%
Industrial 2532,361.4083.430.26%
Financial 159,403.11-32.24-0.34%
Financial & Ind. 3035,782.1736.540.10%
All Share34,106.9256.680.17%
Oil & Gas 27,755.9296.110.35%
Mining 31,956.99123.140.39%
Gold Mining2,236.59-.56-0.03%
Platinum Mining56.11-.57-1.01%
GENERAL MINING8,278.1262.630.76%
Oil & Gas Producers 14,923.8451.670.35%
Basic Materials 27,400.63110.420.40%
Chemicals 15,027.4552.040.35%
Forestry & Paper 14,385.1157.400.40%
Industrial Metals 30,723.76235.630.77%
Industrials 33,076.34-58.59-0.18%
General Industrials 88,747.20-35.08-0.04%
Consumer Goods 33,521.13128.930.39%
Automobiles & Parts 6,148.00124.542.07%
Household Goods184.62-3-1.44%
Health Care 40,928.39-134.63-0.33%
Beverages 112.481.060.95%
Index NameRPMove% Move
Food Producers 60,155.52-315.17-0.52%
Personal Goods 480.90-1.40-0.29%
Consumer Services 66,887.23-258.65-0.39%
General Retailers 55,215.41-94.08-0.17%
Travel & Leisure 3,786.8234.090.91%
Media 100.03-.82-0.81%
Support Services 2,397.17.000.00%
Telecommunications 67,240.99643.170.97%
Financials 24,945.88-58.58-0.23%
Banks 47,273.03-410.59-0.86%
Non-life Insurance 43,785.90142.920.33%
Life Insurance 19,818.9714.690.07%
General Financial 2,351.6515.900.68%
Technology 28,157.91-66.25-0.23%
SHARIAH TOP40 3,046.47100.34%
FTSE/JSE SHARIAH ALL3,167.2680.25%
COAL MINING27,506.22-342-1.23%
FTSE JSE Fledgling 5,399.5560.11%
FTSE/JSE Alt X 1,256.81-14-1.13%
RESOURCE 27,377.011040.38%
DIVIDEND PLUS198.45-0-0.02%
FTSE/JSE RAFI 407,094.3180.11%
Capped Top 4015,882.41310.19%
Capped All Share17,251.11280.16%
JSE TABACO 5,187.20891.74%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
20 Apr 2012PBTFebruary 2012 (Interim)
20 Apr 2012SACMHDecember 2011 (Final)
20 Apr 2012VOXTELCOMFebruary 2012 (Interim)
20 Apr 2012WOLTRU6.75February 2012 (Interim)
20 Apr 2012WOOLTRU 6%February 2012 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PREMIUM12-04-1912-05-1112-05-21R 0.6000
PHUMELELA12-04-1912-05-1812-05-28R 0.2500
OCTODEC12-04-1912-05-1112-05-21R 0.7120
PICKNPAY12-04-1812-06-0112-06-11R 1.0835
PIKWIK12-04-1812-06-0112-06-11R 0.5257
Ex Div**
Share NameDec-DateLDTPay-DateAmount
SHFINV-PREF12-04-0312-04-1312-04-23R 3.7400
LIB-HOLD12-04-0212-04-1912-04-30R 2.2100
TRUWTHS12-04-0312-04-1912-04-30R 1.6900
SANLAM12-03-0812-04-1912-05-09R 1.3000
REMGRO12-03-1512-04-1312-04-23R 1.2600

Upcoming AGMs**
CodeCompany NameDateStatus
MTLMercantile Bank Holdings Ltd.23/04/2012Confirmed
MTLPMercantile Bank Holdings Ltd.23/04/2012Confirmed
ABSPAbsa Bank Ltd.24/04/2012Confirmed
JSEJSE Ltd.25/04/2012Confirmed
ZSAZurich Insurance Company South Africa Lt...25/04/2012Confirmed

Stock Exchange News Service
19/04/201217:49 Decillion Limited - Changes to the board of directors - Amended
19/04/201217:43 SecureData Holdings Limited - Reviewed Condensed Interim Consolidated
19/04/201217:25GND/GNDP - Grindrod Limited - Director dealings in securities
19/04/201217:16 Decillion Limited - Changes to the board of directors
19/04/201217:16 Rare Holdings Limited - Changes to the board of directors
19/04/201217:00 Liberty Holdings Limited - Posting of notice of Annual General Meeting
19/04/201216:59CLN267 - The Standard Bank of South Africa Limited - New Financial Instrument
19/04/201216:58CLN266 - The Standard Bank of South Africa Limited - New Financial Instrument
19/04/201216:53 PSG Group Limited - Dealing in PSG Group Limited shares by an associate of
19/04/201216:30 Convergenet Holdings Limited - Further Trading Statement
19/04/201216:18 RARE Holdings Limited - Unaudited abridged financial results for the 6
19/04/201216:14 Eastern Platinum Limited - Eastplats reports production results for the
19/04/201216:01 Dorbyl Limited - Changes to the composition of the board, committees and
19/04/201216:00 First Uranium Corporation - Production update for the three months ended
19/04/201216:00MWNT - Mine Waste Solutions (Proprietary) Limited - First Uranium announces
19/04/201216:00 Dorbyl Limited - Trading Statement
19/04/201215:55 Conduit Capital Limited - Results of Annual General Meeting
19/04/201215:46RMBINF - RMB Government Inflation Linked Bond Exchange Traded Fund - Listing
19/04/201215:32GND/GNDP - Grindrod Limited - No change statement and notice of Annual General
19/04/201215:17BK1P - BK One Limited - Disclosure of quarterly portfolio as at 29 February 2012
19/04/201215:00 AECI Limited - No change statement and notice of Annual General Meeting
19/04/201214:16 Exxaro Resources Limited - Dealings by a director of exxaro in shares
19/04/201214:10 Pallinghurst Resources Limited - Mailing of Annual Report
19/04/201213:40FCPD - Foord Compass Limited - Results of Annual General Meeting of
19/04/201213:13 ISA Holdings Limited - Resignation of financial director
19/04/201213:02 Exxaro Resources Limited - Trading of Exxaro ordinary shares on behalf of
19/04/201212:33BTIIHA - Investec - Amendment to the final dividend announcement on British
19/04/201212:32AGLIHJ - Investec Warrants - Amendment to the dividend announcement on Anglo
19/04/201212:31BTIIDA - Investec - Amendment to the final dividend announcement on British
19/04/201212:09PTXSPY - Proptrax Sapy - Distribution Finalisation Announcement
19/04/201212:08PTXTEN - PROPTRAX TEN - Distribution Finalisation Announcement
19/04/201212:08AOO/AON/AOVP - African And Overseas Enterprises - Change to the company
19/04/201212:06RTO/RTN/RTOP - Rex Trueform Clothing Company Limited - Change to the company
19/04/201211:58IPL - Imperial Holdings Limited - Dealing in securities by a director of
19/04/201210:43 Premium Properties Limited - Reviewed preliminary results of the group for
19/04/201210:43 Octodec Investments Limited - Unaudited results of the group for the six
19/04/201210:20MND / MNP - Mondi Limited / Mondi plc - Notification of Major Interests in
19/04/201210:08 Trencor Limited - Trencor`s textainer completes the issuance of $400
19/04/201209:16 Bowler Metcalf Limited - Director`s dealing in securities
19/04/201209:14GEN - General - SAH & 1TM - Late submission of Provisional Financial Statements
19/04/201209:13GEN - General - RAR & SKY - Late submission of interim financial statements
19/04/201209:08 SACMH - Reduction in Production
19/04/201209:00 Anglo American plc - Interim Management Statement for the first quarter
19/04/201209:00FSR/FSRP - FirstRand Limited - Dealing in securities by director
19/04/201208:00 SABMiller - SABMiller Full Year 2012 Trading Update
19/04/201208:00 Anglo American Platinum Limited - Quarterly review and production
19/04/201208:00 Business Connexion Group Limited - Reviewed condensed consolidated
19/04/201208:00 Kumba Iron Ore Limited - Kumba Iron Ore Limited production and sales
19/04/201207:10 British American Tobacco p.l.c - Transaction in own shares
19/04/201207:10SYN911 - Synthesis Funding Limited - New Financial Instrument Listing
19/04/201207:05 Phumelela Gaming And Leisure Limited - The Group`s unaudited condensed

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