Our opinion on the current state of CGN

Cognition (CGN) is a group of companies which specialises in agency-based payment systems, fax to e-mail services, knowledge creation and management. Cognition describes itself as "...a multi-disciplinary data collection, communication, research and marketing company that provides a broad range of services to Fast Moving Consumer Goods (FMCG) companies, media and digital agencies". In its results for the year to 30th June 2023 the company reported revenue down 13,6% and headline earnings per share (HEPS) of 3,15c compared with 0,46c in the previous period. The company said, "Financially the most significant event was concluding the disposal of the Group’s majority interest in Private Property which is classified and reported on by the Group as discontinued operations. The disposal resulted in a direct profit of R66.7 million before tax and improved the cash holdings of the Group significantly". From a private investor's perspective, the biggest problem with this share is the very low volume traded. On average it has been trading about R2300 worth of shares a day which makes it totally impractical for private investors.