||EPS - Basic
||Market Cap (m)
|Health Care Equipment & Services
Real-Time news about African Med (London Stock Exchange): 0 recent articles
|mike111d: The share price is no doubt down at current levels for a reason, so best to DYOR and not get drawn in by a certain poster who I see is now busy promoting this on the CR thread.
The same person typically invests between £1,000 to £2,000 in illiquid stocks hoping for a quick return, that they are illiquid means that the stocks do not respond well to sales.|
|bobbieblock: $5 million? No wonder the share price tanked!|
|andrbea: here is an article from the Ft
A diversified fund such as this is probably the safe route into Africa but there are alternatives. You could buy into a diversified multinational that is buying up assets across the continent, such as Lonrho. Or you could look at individual African businesses that are quoted on Aim and give exposure to a specific theme.
For example, Camec, the Aim-quoted copper and cobalt mining company, has spun off two London- listed businesses: AgriTerra (ticker symbol: AGTA) and African Medical Investments (AMEI).
AgriTerra is arguably the more interesting of the two. It made its market debut last year. While sovereign wealth funds have been buying up tracts of land, AgriTerra has been taking a different tack. It has avoided the thorny political issue of buying land and concentrated instead on acting as a middleman, buying up maize from small farmers in Mozambique and then processing and selling it. Its customers include the World Food Programme.
Having invested more than $40m on its existing profitable plant, the company is now rolling out another mill in Mozambique and looking to expand its processing operations in other African countries. This is where Camec's expertise in trucking-based logistics operations should pay off. At its current share price of 3.5p, AgriTerra is valued at £17m, which is not cheap. But if its managers can scale up and build a network across the southern half of the continent, the value of AgriTerra to a bigger food processing conglomerate could be huge.
African Medical Investments is a play on the growing demand for specialist, high-quality private healthcare. It is built on solid foundations: an outfit providing airport clinics and a fast-growing trauma clinics business that's up and running in Tanzania's Dar Es Salaam and soon to be rolled out to Maputo in Mozambique.
African Medical is all about deploying large amounts of upfront capital on the ground in to build a leading position in a sector that would be regarded as mainstream in the developed world. Food processing and private hospitals are regarded as a fairly boring play in the UK but very few people have committed the resources to these sectors in Africa and thus you can quite quickly build a first-mover advantage.
Of course, the risk is that that first-mover advantage will amount to nothing if political chaos erupts but that's the investment argument here: in Mozambique, Tanzania and Uganda, political risk is slowly being taken off the table. So, if African Medical achieves strong growth, it'll probably be snapped up by a bigger outfit looking to expand its hospital network into Africa.
So, AgriTerra and African Medical are essentially private equity assets that happen to be listed. I'd also love to see Camec's logistics operation hived off. Unlike Lonrho, neither offer any built-in diversification. Even so, for the adventurous investor who wants to build a long- term position in Africa, these discrete trading businesses represent a bolder bet on the continent's future.
African Med share price data is direct from the London Stock Exchange