{"id":490395,"date":"2023-05-06T13:51:20","date_gmt":"2023-05-06T11:51:20","guid":{"rendered":"https:\/\/mybroadband.co.za\/news\/?p=490395"},"modified":"2023-05-08T15:18:47","modified_gmt":"2023-05-08T13:18:47","slug":"ellies-disaster","status":"publish","type":"post","link":"https:\/\/mybroadband.co.za\/news\/investing\/490395-ellies-disaster.html","title":{"rendered":"Ellies disaster"},"content":{"rendered":"

Ellies\u2019 share price declined by 99% over the last decade, making it one of the worst performers on the Johannesburg Stock Exchange (JSE).<\/p>\n

Ellies was founded by Ellie Salkow in 1979 in Johannesburg with five employees, selling only television aerials.<\/p>\n

The company expanded rapidly and opened branches in Cape Town, Durban, Port Elizabeth, Windhoek, Polokwane, Gaborone, Nelspruit, East London, and Bloemfontein.<\/p>\n

Ellies broadened its product range in the nineties to include remote controls and various other accessories.<\/p>\n

In 1995, the company founded Elsat with the advent of satellite TV in the South African market.<\/p>\n

In the 2000s, Ellies and Elsat became household brands and continued to expand the product range to include audio, telephone accessories, and domestic electrical products.<\/p>\n

The next decade saw it adding renewable energy products, backup power, and other products to its portfolio.<\/p>\n

Ellies was listed on the JSE\u2019s Alternative Exchange (AltX) in 2007. It issued its maiden dividend in 2010 and moves to the JSE\u2019s main board in 2010.<\/p>\n

The company became a firm favourite among investors and hit an all-time high share price of over R9.50 per share in May 2013.<\/p>\n

There was tremendous excitement about its involvement in providing set-top boxes in partnership with Altech UEC as part of the digital terrestrial television (DTT) roll-out.<\/p>\n

However, as the government started to fumble the DTT migration, so did the interest in Ellies and its prospects.<\/p>\n

The share price declined by 80% between 2013 and 2014, and the company continued to lose value as it searched for new revenue streams.<\/p>\n

By 2019 it was trading at 10c per share \u2014 a level which persists to this day despite a short-lived jump 18 months ago on the back of a new BEE deal with the Imvula Education Empowerment Fund Trust.<\/p>\n

More recently,\u00a0Ellies announced a plan to buy Bundu Power<\/a><\/strong>\u00a0for a maximum consideration of R202.6 million to strengthen its presence in the alternative energy market.<\/p>\n

Bundu Power was founded in 2005 and specialises in the distribution and rental of generators and the distribution and installation of solar and ancillary products.<\/p>\n

With a market cap well below R100 million and ambitions of growing its alternative energy market share, many investors wonder if it is worth a nibble.<\/p>\n

Speaking on Business Day TV, Wayne Mccurrie from FNB Wealth & Investments said he would not invest in Ellies.<\/p>\n

\u201cIt was listed with great fanfare and did extremely well in the early years, but I would not consider it now,\u201d he said.<\/p>\n

David Shapiro from Sasfin Securities is also not bullish about Ellies, saying they should have never listed on the JSE.<\/p>\n

\u201cThe CFO was a good friend of mine, and I urged him not to go public. They were a really good trading company. They never had the character to go public,\u201d he said.<\/p>\n

Ellies share price<\/h2>\n

The chart below shows Ellies\u2019 share price since the company was listed in 2007.<\/p>\n

\"\"<\/a><\/p>\n

\n

This article was first published by Daily Investor<\/a><\/strong> and is republished with permission.<\/em><\/p>\n

Now read:\u00a0Ellies reports massive loss<\/a><\/h3>\n","protected":false},"excerpt":{"rendered":"

Ellies’ share price declined by 99% over the last decade, making it one of the worst performers on the Johannesburg Stock Exchange.<\/p>\n","protected":false},"author":341108,"featured_media":370149,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sma_x_autopost_status":"idle","_sma_x_autopost_error":"","_sma_x_post_id":"","_sma_facebook_post_id":"","_sma_instagram_post_id":"","_sma_threads_post_id":"","_sma_x_attempts":0,"footnotes":""},"categories":[80335],"tags":[1295,3320,86079,32108,18150,86081,18911,35],"class_list":["post-490395","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-altech","tag-altech-uec","tag-alternative-exchange-altx","tag-bundu-power","tag-digital-terrestrial-television-dtt","tag-ellie-salkow","tag-ellies","tag-headline"],"_links":{"self":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/490395"}],"collection":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/users\/341108"}],"replies":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/comments?post=490395"}],"version-history":[{"count":0,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/posts\/490395\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media\/370149"}],"wp:attachment":[{"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/media?parent=490395"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/categories?post=490395"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mybroadband.co.za\/news\/wp-json\/wp\/v2\/tags?post=490395"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}