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http://www.moneyweb.co.za/news/companies-and-deals/trading-idea-it-might-just-be-time-to-short-naspers/

Traders on the JSE are facing an emotional dilemma: should they decide to take a bet that shares in JSE-listed media group Naspers are going to fall from R2 000?

The company has been an excellent investment, having returned 82% over the past 12 months. However the psychological R2 000 per share mark is proving a tough nut to crack, especially with concerns that Chinese subsidiary Tencent has been overpriced and that the market may well be suffering from Naspers fatigue. 

Asset manager Vestact makes the point in a recent note to clients:

“Take the Tencent market cap in Hong Kong, which right now is 1.58 trillion HKD. Naspers owns 33.85% of TenCent, that translates to 534 billion Hong Kong Dollars. One Hong Kong Dollar at the current exchange rate is 1.56 rand. So, quite simply, multiply 534 billion HKD by 1.56 and that equals 834.8 billion rand. Naspers had a market capitalisation of 813 billion rand at the open today, up 3.7% as I write this in early morning trade which equals 843 billion rand. The difference between what the stake in Tencent is worth, relative to what the JSE buyers are willing to pay is roughly 8 billion rand.

“Effectively, the South African asset management community is telling you that the people of Hong Kong, or the folks valuing Tencent on a 53 multiple are overpaying. With growth rates in the mid 30s, the PEG ratio is somewhere in the region of 1.43 times, which is starting to reach expensive levels.”

Stockbrokerage Imara SP Reid made a similar point with the share hit R1 198 last year and valued the share as “fully valued” and noted in a November 2014 note: “In our view the current results and ROE [return on equity] of 11% are, simply put, not good enough for the current stock price. “

According to analyst consensus forecast on FT.com, the share will “outperform” the market according to views from 18 polled analysts.

Naspers has been driven by a surge in Chinese stocks but analysts are raising concerns that equity markets are overcooked and it may pay to err on the side of caution in China.

Damn, u cannot open any website this morning without some1 writing about NPN or 10c, what have they been doing, watching D-Stv ?

@ Maximillan,

NPN - my 10c 

I like NPN, but I bought at lower levels. I will be keeping my NPN (3 years timeline currently). Go to Naspers.com and read and have a look, I feel that you have to have a IT company in your porfolio. But if I have not bought yet, I probably would still have bought now, it was fully valued from about R800 a share. But have a look at it, and make the call which ever you feel comfortable. Maybe join the competition and buy it there, then keep an eye on it. Also just remember,

Intention to list Novus Holdings Limited on the JSE Limited

NASPERS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1925/001431/06)
Share code: NPN ISIN: ZAE000015889
("Naspers" or "the Group" or "the Company")



INTENTION TO LIST NOVUS HOLDINGS LIMITED (FORMERLY PAARL MEDIA GROUP PROPRIETARY LIMITED) ("NOVUS")
ON THE JSE LIMITED ("JSE")


Rationale

Media24 Holdings (Proprietary) Limited ("Media24"), a subsidiary of Naspers, has applied for a JSE listing
of Novus, a subsidiary of Media24. With an ever growing percentage of Novus's work now coming from
third parties, and Novus's continued diversification of its revenue streams, it is appropriate to list Novus
on the JSE. The listing will be effected via a private placement of Novus shares held by Media24.
Media24 will remain the majority shareholder of Novus.

Overview of Novus

Novus is a leader in the printing and manufacturing sectors. It operates eleven specialised printing plants
and one tissue plant across South Africa and provides a comprehensive range of products and services
nationally, as well as in other parts of Africa. In the financial year ended 31 March 2014 Novus achieved
revenues of R3,969 million and an operating profit R649 million.

Additional information

Novus will issue press releases with additional information in respect of the listing in due course. It is
expected that the listing will take place during March 2015.


Cape Town
18 February 2015


Investment Bank to Novus and Sponsor to Naspers
Investec Bank Limited

lol, I is last on the darkside ....

NPN clapped the R2000 lvl ...

DRD
SGL
AEL - any1 looking at this 1?
Weekend