This is the most interesting SENS of the day. Northam confirmed that its strategic review process — launched in August to solicit proposals for potential transactions — has attracted expressions of interest from both South African and multinational corporations, and they're arriving well ahead of the 1 December deadline. That's a strong signal that the company has assets worth fighting over. Ghost Mail separately noted that GCR Ratings upgraded Northam's credit rating to a Stable outlook, which reinforces the financial health story. At 7.1x trailing PE with a 37.2% ROE and an EV/EBITDA of just 6x, Northam is already priced like a commodity miner with no special situation premium.
The cautionary remains in place, which means we're still in the early innings — non-disclosure agreements have been signed and management is engaging with senior executives from interested parties. The range of outcomes is wide (partial sale, full takeover, asset-level JV), but the direction is clear: someone wants what Northam has, and the board is running a proper auction. The share jumped 5.8% to R245.75 on the day, but that still leaves it 9% below the 52-week average. The platinum price environment isn't easy, but a corporate action premium is the kind of catalyst that turns a cheap miner into a double. BULLISH — this process has real momentum.
A disposal for R1,001. That's not a typo — one thousand and one rand for a business that once produced silicon carbide in Kriel, Mpumalanga. Mantengu's board has accepted that Sublime Technologies is effectively worthless after Eskom refused to approve a new electricity tariff agreement. The company stopped generating any income in June 2025 and has been burning cash ever since. The buyer is a consortium of family trusts represented by Dr Timothy Tebeila, which at least means the disposal is arms-length. But the symbolism is brutal: a business that couldn't get a competitive electricity tariff in a country where energy costs make or break industrial processes.
Mantengu itself trades at R0.18 with a market cap of just R58.5m — and an enterprise value of R775m, meaning there's over R700m in debt sitting on a micro-cap balance sheet. The Altman Z-Score of -0.46 and Piotroski F-Score of 1 (out of 9) are flashing distress signals. Shares outstanding have ballooned 50% in one year, and ROE is -85.2%. Cleaning house by selling dead assets is the right thing to do, but it doesn't change the fundamental math: this is a company with negative equity value on an enterprise basis. BEARISH — the disposal is a necessary step, not a turnaround signal.
Datatec is the kind of boring, well-run ICT business that consistently delivers and gets zero respect from the market. Gross invoiced income — the real top-line measure for a distributor — jumped 18% to US$4.84bn, revenue climbed 13.9% to US$2.02bn, and adjusted EBITDA rose 16.6% to US$150.7m. The headline EBITDA number showed a -7.8% decline, but that's entirely because of non-cash IFRS adjustments — strip those out and the underlying performance is strong. The Westcon International and Logicalis divisions both contributed, and the company declared a dividend with a scrip alternative, which tells you management is capital-aware.
At R59.77, Datatec trades on a trailing PE of 10.1x with a 17.9% ROE and 1.46x book. The stock is down 10.7% over 52 weeks despite the operational momentum — the market has been punishing anything with international earnings exposure on USD strength fears. The forward PE of 7.1x is absurd for a business growing adjusted EBITDA at 16.6%. The share ticked up 1.4% on results day, which is a start, but this deserves a rerating. BULLISH — cheap, growing, and completely ignored.
The headline numbers tell a story of a retailer winning the volume game but losing on margin. Revenue hit R23bn, up 8%, and Dis-Chem points to the Better Rewards programme as the main driver. One year in, the programme has returned R1.5bn in instant value to customers — that's real loyalty currency, and it shows in foot traffic. But 45% of front shop retail sales experienced temporary price deflation, and the cost of rewarding customers shows up in the P&L: gross profit margin compressed, EPS dropped 13.3% to 64.1c, and the interim dividend was trimmed to 25.62c per share. The market barely reacted — the stock closed flat at R27.95.
The question is whether Better Rewards becomes a moat or a margin-destroying arms race. Management argues that once the base effects from the programme's first anniversary unwind, natural inflation will support retail revenue growth. They're probably right, but the 24.5x trailing PE already prices in a lot of optimism. At 4.2x book with an 18.96% ROE, this isn't a broken business — it's a good business going through a margin reset. The next six months will tell us whether the programme economics work. NEUTRAL — watch the margin trajectory.
This is the kind of trading statement that makes you check the date twice. Astral Foods — a company that was grinding through load-shedding, avian flu scares, and input cost inflation for years — just dropped a 90-100% EPS pop on the back of lower grain prices and operational discipline. Feed costs are the single biggest variable in poultry, and with maize and soya prices softening globally, the margin expansion is real. The company also noted improved broiler production volumes, growth in external feed sales, and a deliberate shift into higher-margin segments of the sales mix. That's not luck — that's management executing on a strategy they've been talking about for 18 months.
At R198.40 the stock trades on a trailing PE of just 4.95 with a 29.7% ROE and almost no debt (D/E 0.04). The market clearly doesn't believe the earnings bounce is sustainable — the 52-week chart shows the stock down 8%, still well below the 200-day moving average of R233. If you believe grain prices stay soft and the consumer doesn't completely collapse, this is priced like a distressed business delivering record earnings. The final results drop on 23 November. BULLISH.
Another quarter, another predictable beat from the world's largest brewer. AB InBev grew Q3 revenue 4.9% (9.1% reported, helped by FX) to US$16.5bn, normalized EBITDA ticked up 3.9% to US$5.96bn, and underlying profit rose 21.6% to US$2.4bn. Revenue per hectolitre grew 4.2%, the megabrands — led by Corona at +20% outside its home market — continue to gain share, and no-alcohol beer revenue jumped 35%. The company also reported a 45% surge in GMV from its digital marketplace. This is a well-oiled global beverage machine printing US$6.7bn in underlying profit through nine months.
So why is the JSE-listed ANH down 7% at R1,302? The margin contraction is the culprit — normalized EBITDA margin shrank 34bps to 36.1% on higher input costs and currency headwinds. In a market obsessed with margin expansion, a 34bp contraction is enough to trigger a rotation out of staples. For a JSE investor, the secondary listing adds FX complexity and liquidity risk. On 7.1x trailing PE with a global portfolio of irreplaceable brands, this isn't expensive — but it's also not the most exciting thing you can own in SA today. NEUTRAL.
Adcorp is the quiet turnaround that nobody's talking about. Revenue dipped 2.1% to R6.26bn — that's the headline that looks soft — but the numbers underneath tell a completely different story. Gross profit margin improved to 9.9%, operating profit surged 24.9% to R90.2m, and the EBITDA-to-net revenue conversion ratio improved from 15.4% to 17.5%. EPS rose 14.3% to 60.6c, headline EPS was up 14.2%, and the company declared a 28.46c interim dividend — a 14.9% increase. This is a business that has finished restructuring and is now extracting operating leverage.
At R6.20, Adcorp trades on a trailing PE of 4.7x, 0.46x book value, and an EV/EBITDA of just 2.66. The market is treating it like a broken staffing company when the numbers say it's a lean, tech-enabled workforce solutions business generating real cash. Staffing Solutions SA delivered revenue and gross profit growth, Professional Services Australia improved profitability, and the net unrestricted cash position sits at R174.2m. The stock barely moved on the day (+0.8%), which tells you nobody read past the revenue line. BULLISH — this is value territory with a dividend that's actually growing.