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<p>MARKUS HAASPOOT: ZEDER </p>
<p>Down to earth value </p>
<p>MY ILLUSTRIOUS OPPONENT is going to spin some fancy talk about how the clever okes at Paladin are going to build and extract enormous value from their small cap portfolio. Ja-nee... it's obviously easy to razzle-dazzle. </p>
<p>But for me, the earthy underlying value at Zeder sits well with the ou manne, who know you have to plough for many years before you properly turn over an excellent harvest. </p>
<p>While Zeder's a long-term play, it's difficult - unless you're one of those okes who puts milk in your coffee - not to feel a trill of excitement at buying Zeder at a more than 30% discount to what the fancy-pants investors call "see through" value. Last time I looked, Zeder was trekking around 198c/200c against a "see through" value of almost 270c/share. And there's, nogal, a dividend too... </p>
<p>Look, it's very simple: When you buy a Zeder share, you're buying cheaply into the company's interests in Pioneer, Distell and KWV. Jislaaik, a man can get tipsy (and lekker hungry) just thinking about the underlying brands: Roodeberg, Klippies, Tassies, Bokomo, Safari, LiquiFruit, etc. </p>
<p>Put another way, you're paying basically boggerol for Zeder's other investments, such as Capespan, MGK Business Investments and Suidwes. </p>
<p>Ja, I won't lie there are not moerse image problems at Pioneer Foods. But Pioneer - if we look away from unfortunate past mistakes - is a business that goois with the cash flows and will be able to pay stywe dividends again in a few years. </p>
<p>I know Zeder will stay on top of developments at Pioneer, and I'll eat my rugby socks and veldskoens if the company plays a much bigger role in the food giant in the future. </p>
<p>MARC HASENFUSS: PALADIN </p>
<p>More than an educated guess </p>
<p>I PROBABLY LIKE ZEDER - notwithstanding unsavoury events at Pioneer Foods - as much as my alter ego. But it's just that I find Paladin, at this early stage in its investment life, most intriguing. I'll be the first to admit that buying an investment company at a premium price to its underlying value may not seem terribly prudent - especially since such kinds of investment instruments have traditionally attracted discounts of between 15% and 30%. And there's the issue of Paladin not paying dividends over the next few years. </p>
<p>But I'm happy Paladin's value is anchored by some quality small cap business - most notably, an investment in CIC Holdings (an overlooked business that seems capable of generating sustainable earnings growth). </p>
<p>Paladin is also already showing signs of shuffling around its smaller interests (Erbacon, for example) to better position those interests for future value unlocking. Value is one thing but (future) deal flow is quite another. As PSG's "preferred investment vehicle" I think some interesting opportunities are going to come Paladin's way. </p>
<p>Currently, the investment in KK Combi's Thembeka Capital (and to a lesser extent, Spirit Capital) could provide some initial excitement - although I suspect the large investment in fledgling private education group Curro is going to be the "next Capitec" in the PSG stable. </p>
<p>I know at the last PSG/Paladin AGM the collective executives were doing their level best to mute enthusiasm for Curro's potential. But the latest move by Paladin to bump up its stake in Curro to 76% is undeniably telling. </p>
<p>If we're looking at concept that's only half as successful as AdvTech's private education model for primary and secondary education, then Paladin is really on to a good thing with Curro.
<p>MARKUS HAASPOOT: ZEDER </p>
<p>Down to earth value </p>
<p>MY ILLUSTRIOUS OPPONENT is going to spin some fancy talk about how the clever okes at Paladin are going to build and extract enormous value from their small cap portfolio. Ja-nee... it's obviously easy to razzle-dazzle. </p>
<p>But for me, the earthy underlying value at Zeder sits well with the ou manne, who know you have to plough for many years before you properly turn over an excellent harvest. </p>
<p>While Zeder's a long-term play, it's difficult - unless you're one of those okes who puts milk in your coffee - not to feel a trill of excitement at buying Zeder at a more than 30% discount to what the fancy-pants investors call "see through" value. Last time I looked, Zeder was trekking around 198c/200c against a "see through" value of almost 270c/share. And there's, nogal, a dividend too... </p>
<p>Look, it's very simple: When you buy a Zeder share, you're buying cheaply into the company's interests in Pioneer, Distell and KWV. Jislaaik, a man can get tipsy (and lekker hungry) just thinking about the underlying brands: Roodeberg, Klippies, Tassies, Bokomo, Safari, LiquiFruit, etc. </p>
<p>Put another way, you're paying basically boggerol for Zeder's other investments, such as Capespan, MGK Business Investments and Suidwes. </p>
<p>Ja, I won't lie there are not moerse image problems at Pioneer Foods. But Pioneer - if we look away from unfortunate past mistakes - is a business that goois with the cash flows and will be able to pay stywe dividends again in a few years. </p>
<p>I know Zeder will stay on top of developments at Pioneer, and I'll eat my rugby socks and veldskoens if the company plays a much bigger role in the food giant in the future. </p>
<p>MARC HASENFUSS: PALADIN </p>
<p>More than an educated guess </p>
<p>I PROBABLY LIKE ZEDER - notwithstanding unsavoury events at Pioneer Foods - as much as my alter ego. But it's just that I find Paladin, at this early stage in its investment life, most intriguing. I'll be the first to admit that buying an investment company at a premium price to its underlying value may not seem terribly prudent - especially since such kinds of investment instruments have traditionally attracted discounts of between 15% and 30%. And there's the issue of Paladin not paying dividends over the next few years. </p>
<p>But I'm happy Paladin's value is anchored by some quality small cap business - most notably, an investment in CIC Holdings (an overlooked business that seems capable of generating sustainable earnings growth). </p>
<p>Paladin is also already showing signs of shuffling around its smaller interests (Erbacon, for example) to better position those interests for future value unlocking. Value is one thing but (future) deal flow is quite another. As PSG's "preferred investment vehicle" I think some interesting opportunities are going to come Paladin's way. </p>
<p>Currently, the investment in KK Combi's Thembeka Capital (and to a lesser extent, Spirit Capital) could provide some initial excitement - although I suspect the large investment in fledgling private education group Curro is going to be the "next Capitec" in the PSG stable. </p>
<p>I know at the last PSG/Paladin AGM the collective executives were doing their level best to mute enthusiasm for Curro's potential. But the latest move by Paladin to bump up its stake in Curro to 76% is undeniably telling. </p>
<p>If we're looking at concept that's only half as successful as AdvTech's private education model for primary and secondary education, then Paladin is really on to a good thing with Curro.
