Nepi-Rockcastle
12 June 2019 By PDSNET
Viceroy (the same organisation that attacked Steinhoff and Capitec) produced a report in which they claimed that Nepi's profits were over-stated to the tune of 325m euros. The report was immediately rubbished by the CEO, Alex Morar, and by a local analyst. Nepi requested that dealings in its shares prior to the publication of the report be investigated. The effect was that the price of Nepi dropped by 17,8% in a single day - but then recovered most of their losses the next day to close just 6% down. Obviously, Viceroy had a short position through which they were capitalising and Morar is talking about initiating legal proceedings.
On 6th May 2019, the Financial Sector Conduct Authority (FSCA) reported that it has found no evidence of misleading reporting by Nepi. We believe that this share is currently under-priced and due for a significant upward re-rating based on its results and continued growth. What is interesting is the company’s dividend yield (DY) of 5,56%. This is unprecedented for a rand hedge with such a solid balance sheet and such good growth prospects. Therefore it could represent a good buy for private investors, in our opinion.
Consider the chart:
