Don’t be surprised to see Invicta making eyes at enX
Would the reliable enX forklift distribution business in SA and the UK have some attractions for Invicta?
The recent spark in the share price of industrial equipment specialist enX Group was quickly snuffed out on Monday following the release of results for the year to end-August.
Market watchers might well have expected the enX share price (https://www.sharenet.co.za/v3/quickshare.php?scode=ENX) to find traction after the announcement in July of the R1.3bn sale of most of its fleet management business to Bidvest Bank.
But the market has little love for industrial counters these days, although some might argue that enX’s 100c/share in earnings is not unreasonably reflected in an earnings multiple of 10 times. Low single digit multiples are not uncommon at SA-focused small caps these days...