THE BOTTOM LINE
Cash flow at Trustco: Just how far will trust go?
All eyes on the Namibian investment company’s operational cash flows after share price spike
It certainly does not take much to ignite the share price of Namibian investment company Trustco, which has operations that span insurance, banking, private education, diamond mining and real estate.
On November 6, Trustco’s shares had drifted down to 620c with the market showing apparent concern that CEO, founder and major shareholder Quinton van Rooyen was about to provide a much-needed new loan structure for the company.
The highly illiquid share, held mostly by Van Rooyen and entities associated with US-based investor Sean Riskowitz, had since mid-September shown ominous signs of brittleness. In recent weeks, the share price started showing signs of a steady recovery.
On Monday, however, Trustco’s shares spiked more than 10% in light volumes on the seemingly mundane news that the group’s educational division’s Vocational Training Centre received a compliance certificate from the Namibian ministry of labour on November 18.
On Wednesday, Trustco also provided an update of its diamond mining activities, most notably that its Meya operation exported another 2,572 carats from Sierra Leone to Antwerp.
Like the private education news, the progress report for the diamond operations is not exactly earth-shattering. In truth, the volatility in Trustco’s share price might well only be properly addressed when the group issues its interim results to end-September. This should be in the next fortnight.
All eyes will be on the all-important operational cash flows and just how much profit is banked on the revaluation of Trustco’s property assets.
These are very interesting days for the Namibian investment company.