The JSE-listed companies that are under-valued and unloved but which show promise.
The JSE is trading on a price:earnings multiple of 19.6, well above its ten-year average of 16.2x. While valuations are still high, in many cases share prices have retreated slightly and for those prepared to do the legwork, value can be found.
The Moneyweb Investor invited suggestions from analysts on ‘diamonds in the rough’, shares they felt were over-looked and un-loved but which could reward patient investors over the next twelve to 36 months. We present the ten we found most interesting.
AngloGold Ashanti
ANG’s share price follows the gold price. The share is down 9% this year but Lonwabo Maqubela of Perpetua Investment Managers believes this discounts the work that the management team has done in improving the business and capital structure.
He notes that South Africa now contributes only 25% of ANG’s production, which means it is not highly exposed to the SA environment.