Argent Industrial Limited Trade Ideas — JSE:ART

Our opinion on the current state of ARGENT(ART)Argent (ART) is a manufacturer and beneficiator of steel and aluminium products supplying a wide range of businesses in South Africa. It also has operations in the US and the UK. Many of Argent's products are well-known in South Africa, such as Xpanda and Jetmaster. It also supplies bulk steel products and beneficiates to suit specific needs. For example, it sells tube, sheet coil, and plate steel. It modifies these products with bending, slitting, and cutting to length. The company is the largest distributor for Hulamin and offers a full range of aluminium products. It manufactures ladders, castors, and storage bins. It also produces paint and a range of steel cupboards, desks, filing cabinets, and other office furniture. Additionally, it manufactures and markets a variety of steel fencing and gates. Most of these businesses are directly impacted by the state of the South African economy, so the current conditions have forced the company to restructure substantially. In its results for the six months to 30th September 2024, the company reported revenue down 3,3% and headline earnings per share (HEPS) up 3,7%. The company's net asset value (NAV) increased 13,4% to 3265,9c per share. The company said, "The optimism in South Africa surrounding the Government of National Unity has resulted in the recent strengthening of the Rand, which created an accounting write-down of 9.7 million in the group’s cash and cash equivalents, whereas the previous period had a write-up of 11.7 million. Overall, the group showed a resilient performance with revenue declining after a 15% strengthening of the Rand." The average daily value traded in this share is about R874 000, which means that it is viable for private investors. This company is trading on a very low multiple of 6,39 - which we think makes it good value. The share has been rising since its low of 1416c on 8th May 2023. We regard this as a good investment at current levels. Obviously, it will benefit directly from any improvement in the economy. On 19th August 2022, the company announced that it had acquired 100% of the UK company, Standmode, for R159,3m.

$JSEART - Argent Industrial: The Impulse Road Map See link below for previous analysis. Argent has had a strong run from the 2015 bottom at 302cps. The advance is unfolding as a five wave Impulse labelled wave (1) to (5); the stock is currently in wave 5 of (3) with wave 4 having terminated at 1101cps. Wave 5 of (3) itself looks to be unfolding as a five wave impulse that is currently in wave {iii}; wave {iii} can extend further from current levels and there is more upside potential with wave {iv} and {v} still to come to complete wave 5 of (3). The completion of wave (3) looks likely to take the stock to new all-time highs; a correction for wave (4) followed by one last advance for wave (5) will complete the five wave sequence. Buy the dips is the logical strategy.

$JSEART - Argent: Stock On The Move Again See link below for previous analysis. Argent stock is tracing out a textbook impulse move. From the wave 4 low of 1101, the stock looks to have completed the first two waves of wave 5 of (3). The third waves of any degree tend to be strong so I am looking at a powerful move towards 2000 cps from current levels. A break below 1101 cps will invalidate this outlook.

Our opinion on the current state of ART Argent (ART) is a manufacturer and beneficiator of steel and aluminium products supplying a wide range of businesses in South Africa. It also has operations in the US and the UK. Many of Argent's products are well-known in South Africa such as Xpanda and Jetmaster. It also supplies bulk steel products and beneficiates to suit specific needs. For example, it sells tube, sheet coil and plate steel. It modifies these products with bending, slitting, and cutting to length. It is the largest distributor for Hulamin and offers a full range of aluminium products. It manufactures ladders, castors, and storage bins. It also produces paint and a range of steel cupboards, desks, filing cabinets and other office furniture. It manufactures and markets a variety of steel fencing and gates. Most of these businesses are directly impacted by the state of the South African economy so the current conditions have forced the company to restructure substantially. In its results for the six months to 30th September 2023 the company reported revenue up 8,6% and headline earnings per share (HEPS) up 22,9%. The company's net asset value (NAV) increased 18,1% to 2879,2c per share. The company said, " The higher interest rates, together with the inflationary environment has had more of an impact on the spending patterns of the consumer, and a lesser effect on Business-to-Business trading. The result is that the latter, which makes up most of the group’s trading, pushed growth during the Current Period". The average daily value traded in this share is about R920 000 which means that it is viable for private investors. This company is trading on a very low multiple of 3,64 - which we think makes it good value. The company's share buy-back program has seen its issued share capital drop by more than one third since 2016. The share has been rising since its low of 1416c on 8th May 2023. We regard this as a good investment at current levels. Obviously, it will benefit directly from any improvement in the economy.

Our opinion on the current state of ART Argent (ART) is a manufacturer and beneficiator of steel and aluminium products supplying a wide range of businesses in South Africa. It also has operations in the US and the UK. Many of Argent's products are well-known in South Africa such as Xpanda and Jetmaster. It also supplies bulk steel products and beneficiates to suit specific needs. For example, it sells tube, sheet coil and plate steel. It modifies these products with bending, slitting, and cutting to length. It is the largest distributor for Hulamin and offers a full range of aluminium products. It manufactures ladders, castors, and storage bins. It also produces paint and a range of steel cupboards, desks, filing cabinets and other office furniture. It manufactures and markets a variety of steel fencing and gates. Most of these businesses are directly impacted by the state of the South African economy so the current conditions have forced the company to restructure substantially. In its results for the year to 31st March 2023 the company reported revenue up 12,8% and headline earnings per share (HEPS) up 21,3%. The company's net asset value (NAV) increased 19,9% to 2683,6c per share. The company said, "The consolidated earnings after taxation attributable to owners increased to R230.5 million, up significantly from R190.2 million in 2022". In a trading statement for the six months to 30th September 2023 the company estimated that HEPS would increase by between 12,6% and 32,6%. The average daily value traded in this share is about R520 000 which means that it is viable for private investors. This company is trading on a very low multiple of 3,65 - which we think makes it good value. The company's share buy-back program has seen its issued share capital drop by more than one third since 2016. The share has been rising since its low of 1416c on 8th May 2023. We regard this as a good investment at current levels. Obviously, it will benefit directly from any improvement in the economy.

Argent Rectangle showing mixed signs with bullish bias to R17.83 Rectangle formation is forming on Argent, 7>21 and Price>200 RSI<50 - Mixed Target R17.83 CONCERNS: High volatility and low liquidity signals show an unhealthy chart, which is not great for breakout trading. For investment purposes it looks like Argent wants to break above the Rectangle and head to R17.83. But with the mixed signals and erratic price action, this is anyone's guess. ABOUT: Argent is largely a steel-based beneficiation group with a very diverse portfolio of businesses that include international brands. The group’s activities are based in Gauteng, the Western Cape, Eastern Cape, Kwazulu-Natal and Mpumalanga, with one subsidiary (Cannock Gates) in the United Kingdom and one (New Joules Engineering) based in North America.

Decline We might see Argent declining a bit, continuing to push down, we are yet to see if it will breakout bearish after that

$JSEART - Argent Industrial Ltd: Waves Call For Further Upside Looking at Argent from the November 2015 low of 302 zac to date, it is clear that the trend is up. The question that many investors and traders should ask is, "how much longer can this trend remain our friend?" The EWP helps us to answer this pertinent question. What we see here are three degrees of trend. labels (1) to (5) represent the intermediate trend, 1 to 5 and ((i)) to ((v)) the minor and minute trend respectively. From November 2015 to June 2020, the stock made a sequence of (1)-(2)-1-2 without making much price advance. The share started to take off in June 2020 in textbook fashion for wave 3 of (3) and then pulled back for wave 4 which looks to have bottomed at 1101 zac. Whether wave 5 of (3) is still unfolding or complete is uncertain but the larger structure still calls for wave (4) and wave (5) to complete the intermediate five wave sequence. At this juncture, this is more of a buy and hold setup.

Buy Argent Start buying above shaded zone. In the short-term, possible to see retrace first.

Argent Industrial Limited

ART trade ideas