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 six months to 31st December 2022 the company reported revenue down 12,9% and headline earnings per share (HEPS) of 0,67c compared with a loss of 0,7c in the previous period. The company's net asset value (NAV) increased by 41,4% to 100,93c per share. The company said, "The Cognition Group reports a much-improved interim result, mainly benefitting from a significant profit on the sale of Private Property and cost reduction within its continuing operations". In a trading statement for the year to 30th June 2023 the company estimated that HEPS would be between 2,68c and 2,78c per share compared with 0,46c in the previous period. 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 R2500 worth of shares a day which makes it totally impractical for private investors.