Our opinion on the current state of LESAKA(LSK)

Lesaka (previously known as Net1 UEP Technologies), listed on the Nasdaq and JSE (LSK), is a fintech company offering payment solutions across multiple countries. Their Universal Electronic Payment System (UEPS) provides biometrically secure smart cards that facilitate real-time, offline transactions, enabling users to transact at any moment.

In the third quarter ending on 31st March 2024, Lesaka reported revenue of R2.6 billion, an increase from R2.4 billion in the previous quarter, alongside a net loss of R76.4 million. They noted, "Fundamental earnings per share (a non-GAAP measure), positive for a second successive quarter, increased to $0.02 (ZAR 0.45)(1) compared to a fundamental loss per share of $0.02 (ZAR 0.35)(1) in Q3 2023."

Despite trading an average of R21,000 worth of shares daily, the company occasionally experiences days without trading activity. On 5th December 2023, they announced that Chris Meyer would step down as CEO in February 2024. Shortly after, on 6th February 2024, Lesaka acquired Touchsides, a distributor of alcohol to shebeens and informal taverns.