iOCO, formerly EOH, shares gain 175% in twelve months

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mylesillidge

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The South African company that tripled investors' money

iOCO, formerly known as EOH, has been one of the best-performing stocks on the JSE over the past year, gaining over 175% in the past twelve months.

This comes amid a tumultuous time for the company, which is still recovering from corruption investigations and an asset firesale to pay down its unsustainable debt burden.
 
Alright folks, I’ve spent way too many evenings diving into iOCO’s (ex-EOH) “turnaround story,” and to be honest, I’m not buying the hype. Here’s my personal rundown, complete with the sources I’ve stumbled upon:



1. Those Share Price Gains Are Super Misleading​


Yes, the stock jumped by over 175% in the last year (March 2024–2025) and rallied 195% from April 2024 to March 2025 (thanks, JSE data). But if your share price was R1.05 after a 99% collapse, then even a small uptick looks huge percentage-wise. EOH used to trade around R170 (Moneyweb, 2020). So going from R1 to R3 isn’t exactly legendary.


A lot of the recent hype seems driven by short-term retail traders (EasyEquities data). I haven’t seen any major institutional players jump on board. That alone makes me cautious.



2. The Profit Claims Don’t Quite Add Up​


They posted a R54M loss in 2024 (confirmed in their annual report), yet they’re now bragging about a 220–240% jump in profit for 2025? Supposedly, they got some of that bump from R89M in asset sales (ITWeb, Feb 2025). That’s not what I’d call sustainable operational growth—it’s more like selling off the family silver.


Also, it’s based on a trading statement, not audited numbers. Until I see official audited results, I’m taking it with a big grain of salt.



3. Leadership Turnover Feels Chaotic​


  • Van Coller left in March 2024 (SENS).
  • Andrew Mthembu took over…for about 53 days (BusinessTech, May 2024).
  • Then Marius de la Rey came in as interim until these new co-CEOs (Summerton & Venter) showed up in Feb 2025.

They keep saying they have a “three-phase plan,” which mostly seems like cost-cutting (they’ve laid off 4,000+ employees since 2020). This isn’t exactly the hallmark of a stable, well-run operation.



4. Rebranding Doesn’t Fix Everything​


They switched from EOH to iOCO in December 2024, acting like that alone wipes out past scandals. But the infamous R300M Home Affairs tender (2017–2022) produced zero deliverables (Daily Maverick), and I’ve yet to see them address that in a meaningful way. A fresh logo and website? Cool. Real governance reform? Nowhere in sight.



5. Analyst Quotes Feel Superficial​


I love David Shapiro and Wayne McCurrie, but their comments about “pricing power” and “management saving the company” might be missing some critical context. For instance, iOCO’s gross margin dropped to 28% in 2024 (down from 35% in 2020). So are they really charging more, or are they just losing business?


Also, revenue’s been halved to R6B (2024), and the workforce is down 60% since 2018. That doesn’t scream “healthy rebound” to me.



6. Activist Shareholders Can Be a Mixed Bag​


We know that Rhys Summerton snapped up a 12% stake in 2024 (SENS). Are we sure this is about long-term growth, or is he just trying to flip things around for a quick profit? Let’s just say I’m skeptical.



7. Debt & Lawsuits Haven’t Magically Disappeared​


Yes, they lowered their debt from R5.3B (2020) to R1.2B (2024), but a lot of that was from selling off assets at bargain prices. Their liquidity ratio is still around 0.9, which is basically borderline solvency. And don’t forget the R6.4B lawsuit still floating around—former execs are countersuing for defamation (News24, Jan 2025). If that goes south, iOCO might be on the hook for hefty legal fees and more.



8. “Decentralization”: The Latest Buzzword​


They keep talking about decentralization, but they tried that in 2021, and it just led to confusion between divisions and irritated clients. Nothing they’ve shared so far suggests they’ve ironed out those kinks.



9. Cultural Issues Still Unresolved​


I’ve been checking for whistleblower or compliance updates—nada since 2021. On Glassdoor (Feb 2025), they’re sitting at 2.1/5 stars, with employees citing “chaotic leadership” and constant layoffs. That doesn’t sound like a transformed company to me.



10. Comeback Timeline Feels Too Good to Be True​


Look at Steinhoff or Tongaat Hulett—multi-year messes that still aren’t fully resolved. The idea that iOCO fixed everything in a year or so is mind-boggling. More likely, it’s financial maneuvering and a pumped-up share price, not genuine long-term recovery.



Final Thoughts​


Could iOCO be a trade for those with nerves of steel (and tight stop-loss orders)? Sure, maybe. But if you’re looking for a solid long-term investment, I’d wait until they show real, audited profits, stable leadership, and a clear cultural shift. Right now, it all feels like a rebrand-and-hope approach.


I also remember how Van Coller used to talk about making EOH an “ethical tech services” champion, but he left when shareholders basically shot down his long-term plan. Now, they’re going in a direction that looks a whole lot like “sell off assets, cut costs, and hope the stock price rallies.” Buyer beware!

And for clarity I refer my facts to: JSE SENS, ITWeb, BusinessTech, Daily Maverick, iOCO Annual Reports 2020–2024, News24, Moneyweb, Glassdoor and EasyEquities
 
DoringDraad said:
Alright folks, I’ve spent way too many evenings diving into iOCO’s (ex-EOH) “turnaround story,” and to be honest, I’m not buying the hype. Here’s my personal rundown, complete with the sources I’ve stumbled upon:



1. Those Share Price Gains Are Super Misleading​


Yes, the stock jumped by over 175% in the last year (March 2024–2025) and rallied 195% from April 2024 to March 2025 (thanks, JSE data). But if your share price was R1.05 after a 99% collapse, then even a small uptick looks huge percentage-wise. EOH used to trade around R170 (Moneyweb, 2020). So going from R1 to R3 isn’t exactly legendary.


A lot of the recent hype seems driven by short-term retail traders (EasyEquities data). I haven’t seen any major institutional players jump on board. That alone makes me cautious.



2. The Profit Claims Don’t Quite Add Up​


They posted a R54M loss in 2024 (confirmed in their annual report), yet they’re now bragging about a 220–240% jump in profit for 2025? Supposedly, they got some of that bump from R89M in asset sales (ITWeb, Feb 2025). That’s not what I’d call sustainable operational growth—it’s more like selling off the family silver.


Also, it’s based on a trading statement, not audited numbers. Until I see official audited results, I’m taking it with a big grain of salt.



3. Leadership Turnover Feels Chaotic​


  • Van Coller left in March 2024 (SENS).
  • Andrew Mthembu took over…for about 53 days (BusinessTech, May 2024).
  • Then Marius de la Rey came in as interim until these new co-CEOs (Summerton & Venter) showed up in Feb 2025.

They keep saying they have a “three-phase plan,” which mostly seems like cost-cutting (they’ve laid off 4,000+ employees since 2020). This isn’t exactly the hallmark of a stable, well-run operation.



4. Rebranding Doesn’t Fix Everything​


They switched from EOH to iOCO in December 2024, acting like that alone wipes out past scandals. But the infamous R300M Home Affairs tender (2017–2022) produced zero deliverables (Daily Maverick), and I’ve yet to see them address that in a meaningful way. A fresh logo and website? Cool. Real governance reform? Nowhere in sight.



5. Analyst Quotes Feel Superficial​


I love David Shapiro and Wayne McCurrie, but their comments about “pricing power” and “management saving the company” might be missing some critical context. For instance, iOCO’s gross margin dropped to 28% in 2024 (down from 35% in 2020). So are they really charging more, or are they just losing business?


Also, revenue’s been halved to R6B (2024), and the workforce is down 60% since 2018. That doesn’t scream “healthy rebound” to me.



6. Activist Shareholders Can Be a Mixed Bag​


We know that Rhys Summerton snapped up a 12% stake in 2024 (SENS). Are we sure this is about long-term growth, or is he just trying to flip things around for a quick profit? Let’s just say I’m skeptical.



7. Debt & Lawsuits Haven’t Magically Disappeared​


Yes, they lowered their debt from R5.3B (2020) to R1.2B (2024), but a lot of that was from selling off assets at bargain prices. Their liquidity ratio is still around 0.9, which is basically borderline solvency. And don’t forget the R6.4B lawsuit still floating around—former execs are countersuing for defamation (News24, Jan 2025). If that goes south, iOCO might be on the hook for hefty legal fees and more.



8. “Decentralization”: The Latest Buzzword​


They keep talking about decentralization, but they tried that in 2021, and it just led to confusion between divisions and irritated clients. Nothing they’ve shared so far suggests they’ve ironed out those kinks.



9. Cultural Issues Still Unresolved​


I’ve been checking for whistleblower or compliance updates—nada since 2021. On Glassdoor (Feb 2025), they’re sitting at 2.1/5 stars, with employees citing “chaotic leadership” and constant layoffs. That doesn’t sound like a transformed company to me.



10. Comeback Timeline Feels Too Good to Be True​


Look at Steinhoff or Tongaat Hulett—multi-year messes that still aren’t fully resolved. The idea that iOCO fixed everything in a year or so is mind-boggling. More likely, it’s financial maneuvering and a pumped-up share price, not genuine long-term recovery.



Final Thoughts​


Could iOCO be a trade for those with nerves of steel (and tight stop-loss orders)? Sure, maybe. But if you’re looking for a solid long-term investment, I’d wait until they show real, audited profits, stable leadership, and a clear cultural shift. Right now, it all feels like a rebrand-and-hope approach.


I also remember how Van Coller used to talk about making EOH an “ethical tech services” champion, but he left when shareholders basically shot down his long-term plan. Now, they’re going in a direction that looks a whole lot like “sell off assets, cut costs, and hope the stock price rallies.” Buyer beware!

And for clarity I refer my facts to: JSE SENS, ITWeb, BusinessTech, Daily Maverick, iOCO Annual Reports 2020–2024, News24, Moneyweb, Glassdoor and EasyEquities
Click to expand...


First thought.

Learn what an unbundling is, and how it affects share price.
Then redo point 1.
 
Pegging said:
First thought.

Learn what an unbundling is, and how it affects share price.
Then redo point 1.
Click to expand...
Hey, thanks for pointing that out. I’m well aware that unbundling can affect a company’s historical share price—in some cases, a substantial portion of what looks like a ‘drop’ can be accounted for by spun-off assets.


But I’d argue EOH’s decline wasn’t just about an unbundling. Even after factoring in corporate actions, the company was slammed by corruption allegations, failed contracts (like that infamous Home Affairs tender), and never-ending leadership shake-ups. Those aren’t things you can simply write off as “unbundling noise.” If the unbundling was the main culprit, we wouldn’t see the same swirl of lawsuits, governance overhauls, or mass layoffs.


So, yes, I agree unbundling can muddy the waters. But if you’re suggesting that’s the only reason EOH/iOCO’s share price went from triple digits down to peanuts, I’m not entirely sold. If you have specific details on how much of the collapse is directly tied to unbundling versus all the other drama, I’m all ears—and open to being proven wrong. Otherwise, the broader point about the company’s historical crash still stands in my book.


Appreciate the nudge though—always good to double-check the numbers, especially when a company’s had so many moving parts.
 
DoringDraad said:
Hey, thanks for pointing that out. I’m well aware that unbundling can affect a company’s historical share price—in some cases, a substantial portion of what looks like a ‘drop’ can be accounted for by spun-off assets.


But I’d argue EOH’s decline wasn’t just about an unbundling. Even after factoring in corporate actions, the company was slammed by corruption allegations, failed contracts (like that infamous Home Affairs tender), and never-ending leadership shake-ups. Those aren’t things you can simply write off as “unbundling noise.” If the unbundling was the main culprit, we wouldn’t see the same swirl of lawsuits, governance overhauls, or mass layoffs.


So, yes, I agree unbundling can muddy the waters. But if you’re suggesting that’s the only reason EOH/iOCO’s share price went from triple digits down to peanuts, I’m not entirely sold. If you have specific details on how much of the collapse is directly tied to unbundling versus all the other drama, I’m all ears—and open to being proven wrong. Otherwise, the broader point about the company’s historical crash still stands in my book.


Appreciate the nudge though—always good to double-check the numbers, especially when a company’s had so many moving parts.
Click to expand...
I agree with much of what you say.

I used to process corporate actions in my previous lives so I get a bit worked up when I see people ignoring them or getting them wrong,
 
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