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Rolfes: Worth Over 500cps?

Quote:Rolfes (RLF) is a stock that I’ve written a couple of previous articles on. I hold it in my Small Cap Fund and I have been watching the story play out for a while now.

Using the above assumptions after a 10% “Group overhead” discount to the Sum-of-the-Parts (SOTP) and taking out R198m net debt is a fair value of 528cps for Rolfes.

This fair value implies a Price Earnings (PE) of 9.9x, which does not compare badly versus Omnia (OMN) and AECI that are both trading at a PE of 16.3x.

Rolfes share price is currently 390cps, so this fair value implies that the stock is undervalued by a massive 36% and implies a 12m return of around 70%.

Rolfes is a stock I have also been watching and I am now concidering putting money into it what do you guys think?

Interesting find!

Reading through the site, the guy actually runs a fund listed on the JSE (JSE:AWPSMCA), that tracks small and mid cap shares...
JSE Finance Forum Attachment - Filename: awpsmca.JPG   

Yea he is a regular on JustoneLap.com which I listen to often, but I am not sure how I feel about him just yet, but I like his analysis.

I bought some @397 and today they are 411 so I am happy Smile
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