Blue Label’s turnabout

By Moxima Gama

Founded by two siblings in 2001, Blue Label Telecoms (BLU) is a mobile technology company that specialises in selling prepaid airtime, electricity, and ticketing. It also distributes virtual electronic merchandise in South Africa and abroad. In September last year I recommended a buy on Blue Label above 335c/share because not only did its share price abandon its long-term bear trend, but it also broke out of an inverted head and shoulders pattern (a bullish reversal formation). Blue Label was drowning in debt worth R8.9bn, before it embarked on a turnaround strategy focused firstly on recapitalising its troubled investment in Cell C, in which it acquired a 45% stake for R5.5bn in 2016. Blue Label recently announced that it expects to report a rise of up to 45% for the six months…

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Finweek - English (Digital) - 1 Issue, 3/4/2021

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