Johannesburg - Zeder Investments, a South African investor in agriculture, is poised to extend gains from a record high with the stock trading at a discount to the combined value of its interests, Vunani Private Clients said.
“They’ve got really good holdings,” Jonathan Bachrach, portfolio manager at Johannesburg-based Vunani Private Clients, which manages 600 million rand said by phone today.
“There are good long-term prospects.”
The stock rose 3 percent to 6.27 rand at 4:05 pm in Johannesburg, the highest on a closing basis on record.
That extended gains this quarter to 10 percent, compared with a 3.4 percent increase in the 62-member FTSE/JSE Africa Small Cap Index.
The company, which owns 30 percent of Pioneer Foo and 31 percent of Quantum Foods, on November 6 said its sum-of-the-parts valuation increased to 7.49 rand.
Pioneer, a cereal and fruit producer, has rallied 45 percent over the past six months.
Recurring earnings before one-time items in the six months through August increased 78 percent to 16.4 cents a share, Zeder said October 7. - Bloomberg News