Altron: Market clearly likes Nyati the blunder-buster
Share price on the rise as former boss of MTN steps up to fix strategic mistakes made by Altron 10 years ago
With plenty of JSE-listed counters retreating to 52-week lows – in many cases because of corporate governance failures or poor dealmaking – it is heartening to remember that at least some stocks are still moving in the other direction.
Altron, once a member of the JSE’s top 40 index, slipped into the abyss in the late 2000s after making a few strategic blunders. But the new management team, led by CEO Mteto Nyati, has set Altron on a new path. And the market clearly likes what it sees.
On Thursday, Altron’s shares (https://www.sharenet.co.za/v3/quickshare.php?scode=AEL) reached R28.30, giving the company a market capitalisation of R11.2bn, its best valuation since 2008. But the group has a long way to go to reclaim its former glory. In 2007, Altron had a market value of R15.2bn...