At R102.00 per share, the trading price of Phuthuma Nathi shares show a virtually flat movement for the 2018 calendar year but with some considerable dips at certain intervals.
The shares dropped to about R80.00 in April before picking up again. These shares have come down considerably, by almost half, if one takes a three year view.
Phuthuma Nathi is the B-BBEE investment scheme of the money printing pay television operation Multichoice which is a subsidiary of globalising media giant Naspers. Established in 2006 and extended in 2007 to have two chapters, Phuthuma Nathi 1 and 2, the scheme has developed to become one of the most successful B-BBEE arrangements in the country.
The Phuthuma Nathi shares were issued at R10.00 per share and have flirted with the R200.00 mark in 2015. Even at current levels, of R100.00 per share the scheme still represents a huge gain for people who entered early. And capital or share price gain is just one part of this success story. The other side which makes it even more attractive are the huge dividend pays enjoyed by Phuthuma Nathi investors over the years. That’s unlikely to stop in the near future even thought there are some jitters about the potential of streaming services to destabilise the Multichice business model.
Listed on the Equity Express over-the-counter share trading platform, the two chapters of the B-BBEE investment scheme have different shares, which are almost paired value wise. On writing this article the original Phuthuma Nathi 1 was trading at R102.75 and Phuthuma Nathi 2 was at R102.05.