SA’s best performing technology shares - TechCentral

SA’s best performing technology shares

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If you’d invested R40 000 in the shares of Durban-based technology company Adapt IT five years ago, you’d be a millionaire today.

Adapt IT’s shares have risen by a spectacular 2 400% in the past five years, making it the best performing technology counter on the JSE over that period.

They’ve continued their upward momentum after Adapt IT published interim results earlier this month for the six months to 31 December 2015. Headline earnings per share climbed by 35% to 18,6c on the back of a 38% improvement in revenue to R261m.

While an investment in one of the biggest success stories in South Africa’s IT market in the past decade, EOH, would not have generated quite the same returns as money put into Adapt IT, the services company has nevertheless performed very strongly.

EOH has added almost 1 200% in the past five years, driven higher by a combination of strong organic growth and smart acquisitions. It’s the second best performing technology counter over this period.

Indeed, it handily beat the performance of stock market darling Naspers, where a R40 000 investment in 2010 would have turned into a tidy R238 000 today. That’s quite a performance for a company whose market capitalisation is now north of R700bn. A large part of that appreciation, of course, is due to Naspers’s one-third stake in China’s fast-growing Internet superstar, Tencent.

Two technology distributors, Pinnacle Holdings and Mustek, round out the top five technology performers over the past five years.

Data via Google Finance

Five-year share price performance to 27 February 2015 (data c/o Google)

Vodacom is the best performing telecommunications stock, gaining 155% over five years, with Telkom a close second at 143% (thanks to the sharp appreciation in its value since mid-2013 when a new management team took the reins). MTN returned a relatively poor 87% over the same period.

Of course, these comparisons show only the share price performance and don’t take into account other factors like dividend payments.

In the past five years, Gijima performed worse, with investors losing just about all of their money over this period. ConvergeNet and Datacentrix were also poor performers.  — © 2015 NewsCentral Media

5 Comments

  1. Ofentse Letsholo on

    One needs to learn share trading, I would like to own or make money out of these companies

  2. Very few people get rich from share trading. Look at the Dilbert cartoons this week 😉
    The sensible approach is to buy some shares – or unit trusts – as an investment and leave them to grow, not try to be clever and “trade”.

  3. Quite true. Share trading is not straight forward. Therefore I have focused almost exclusively on shares which show either long term (5+ years) potential or have a good dividend yield. My focus has been DY.

    Shares like Vodacom are good long term investments as well as good dividend payers. I have several others. Every cent I have earned in dividends has been put back into buying more shares. Ultimately all I am looking for is an income supplement from dividends.

    Slow going, but I am happy with what I have achieved.

  4. Dear Ed,

    Whilst Pinnacle (PNC) has grown 211% in the past 5 years, they were rocked with allegations of insider trading by their directors. Cannot recall the outcome, but in my mind that hands as a bid dark cloud over the company and their share.

    I sold those I had at a loss. I chose to walk away from a share and company prone to dubious governance.

    So from trading at around 2400 cents a share not too far back, it now trades as less than half of that value.

    It would have been prudent to either leave it off the list or at least disclose some of the history attached to it.

  5. Ofentse Letsholo on

    True dat, share owning for long term investments. I actually want to buy into new startups that I have confidence in. 🙂