Simon’s stock tips

Founder and director of investment website JustOneLap.com, Simon Brown, is finweek’s resident expert on the stock markets. In this column he provides insight into recent market developments.

Simon Brown

TASTE HOLDINGS Running out of money Taste Holdings’ results were as bad as expected as it is bleeding money. Its food division was expected to lose money due to the start-up costs of Starbucks and Domino’s. The surprise was that even the jewellery division saw revenue and profits falling. The big issue here is that Taste is running out of money very fast and with the cancelled sale of the jewellery division, it needs extra cash. Without it, the group is in trouble. Another rights issue would seem out of the question, with the market cap at around R370m at the time of writing. But here’s a titbit: majority shareholder Conduit Capital has announced a rights issue to raise R350m – could that money be earmarked for a larger stake in Taste? STADIO On…

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Finweek - English (Digital) - 1 Issue, 02-nov-17

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