 Featured Articles
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Sunday Money - The JSE winners |
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%Gain |
| Macmed |
550 |
| Foston |
400 |
| Multi |
316 |
| Farm-AG |
300 |
| Corsyn |
268 |
| TMX |
223 |
| Brenmill |
191 |
| Datakor |
169 |
| ZCI |
163 |
| Crown |
141 |
| Metcash |
137 |
| SPL |
125 |
BLUE CHIP BLUES - but the innovation and
How some of bit the dust in
THE JSE WINNERS
 MACMED Health Care, which makes and distributes medical products, blossomed upon its transfer to the JSE's main board from the Development Capital Market sector midway through the year.
In 1991 the share price came under severe pressure as doubt was cast on the company's ability to recover the proceeds of the same of former subsidiary, Glove Manufacturing Venture. Such payment has since been forthcoming __ a development which has transformed Macmed's financial structure.
Meanwhile, reports managing director Don McArthur, tight control of overheads, strict management and the benefits of bulk purchasing are providing a strong boost to earnings.
 Nothing succeeds as much for a company as actually being in business.
And nowhere on the JSE this year was this more apparent than with coal and exploration share Foston which staged a strong come back after a year in limbo because of liquidation of Cape Investment Bank.
A consortium led by Chairman Glenn Laing bought 70 percent of the company from the liquidators and then pleased shareholders by announced increased production levels at New Arbor Colliery and the purchase of the rights to two anthracite deposits near Wakkerstroom with 16 million tons of reserves
These are targeted to produce 30,000 tons a month for the export market.
 SIX weeks ago, Multi-scource Holdings emerged from the cold of stagnation with an electrifying 254 percent increase in earnings in the six months to August.
Trevor Holmes, managing director of this radio paging, two-way radio group is understandably delighted with the performance.
The company's success is derived principally from organic growth from existing clients and significant new contracts.
“The company is ungeared and, with cash reserves up 39 percent to R7.1-million, we are actively looking for acquisitions.”
He expects the momentum to be maintained for the full financial year.
 IN the 12 months to February 1991, Farm-Ag earned a paltry 0.5c a share. In the 18 months to August 1992, annualized earnings were 13.2c, for a 26-fold improvement.
That's one of the reasons for the share's dramatic advance. Another is that it has sold off all its loss-making subsidiaries, leaving it with a single investment a 50 percent stake in Sanachem, a joint venture with Sentrachem.
Managing director Robert Maingard must take much credit for transforming Farm-Ag from a loser into a glowing winner.
Farm-Ag's holding company, Rale, which owns 67% of Farm-Ag has, predictably performed in line with the shares of its underlying investment.
 CORONATION Syndicate burst out of doldrums when 66 percent of the company was bought by former UAL employee David Barnes, UAL Merchant Bank and UAL executive director Gavin Ryan.
The market apparently of approved of Barnes' role in taking day to day trading decisions on the gilts market.
The gilts market enjoyed a mini-boom during the year as institutions approached equity, property, and money market investments with caution.
The prospect of a period of lower inflation and falling interest rates __ usually leading to higher bond prices ___ clearly led the market to believe Coronation's prospects were bright.
TELEMETRIX, the UK-based electronics group caught the eye even after reporting an attributable loss of £1.4 million for the half-year to June.
The market shrugged this off as a hiccup.
Instead it put its faith in the fact that Altron director Bill Venter had a 42 percent stake in the company.
It is also noted with pleasure that there was no immediate sign of letup in the earnings growth of GTI.
This 62 percent-owned US subsidiary did spectacularly well to increase third quarter earnings by 100 percent __ on top of an 83 percent jump in 1991.
Its rand hedge qualities also caught the eye.
 A spectacular earnings surge saw maize meal, malt, and animal feeds manufacturer Brenner Mills hit the JSE headlines.
In the six months to August earnings rocketed by 178 percent and the share price reacted accordingly.
Chairman Arnold Brenner ascribes the improvement to stricter controls on credit to customers, a healthy cash flow (an interest paid situation has been converted to an interest received position and growing contributions to group profits from all the company's mills.
He says prospects for the rest of the financial year are favorable ___ an outlook, which goes a long way towards justifying the share's strong performance.
 In a year during which computer shares distinguished themselves Datakor got is nose ahead of its peers as the stock market re-rated the stock on the back of a growing appreciation of the high caliber of management headed by chief executive Nic Frangos.
At the turn of the decade analysts viewed the shares with skepticism, mainly because the company was heavily borrowed. Now Datakor is cash flush to the tune of R80 million , enabling the payment of a hefty special dividend.
Frangos comments: “It's worth nothing that we've invested heavily in new developments, (new products, which have created new markets), the fruits of which will be reflected in earnings over the next two to three years.”
 ZAMBIAN Copper Investments (ZCI) performed well, in spite of being unable to declare a half-year dividend.
The most likely driving behind the raised price was speculation concerning the possible privatization of at least a portion of the company.
Chairman Gavin Relly reveals that Anglo and Gencor had been talking to the Zambian government about the possibility.
Anglo owned the company before it was nationalized.
ZCI suffers from poor marketability, heightened demand tends to produce a substantial share price improvement.
The share has been tipped by a leading London stockbroker.
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