Mouton family trust mops up cheap PSG shares. PSG's shares are trading at a discount of about 18% to the value of its underlying investments and are down 21.5% this year

The Mouton family trust has taken advantage of weakness in PSG's share price to buy more shares.

The Dana Mouton Trust, named after PSG founder and chairman Jannie Mouton's late wife, bought 5 500 shares on 24 October at an average price of R210.92 each. PSG's shares have fallen 21.5% this year and are trading 29% down from their 52-week high. The group is worth R257.80 per share using its sum-of-the-parts (SOTP) value, which includes the value of its listed and unlisted investments.

Mouton is a trustee of the trust while his sons, PSG CEO Piet Mouton and non-executive director Jan Mouton, are trustees and beneficiaries.

In the six months to end-August, PSG grew recurring earnings per share by 22% to 503c, while its SOTP value at the end of the reporting period was R272.94. Its share price continues to trade at a discount of about 18% to the value of its underlying investments. Its biggest investment is its stake in banking group Capitec, while it owns sizeable stakes in PSG Konsult, Zeder and Curro, among other holdings.

It closed 0.8% higher at R212 yesterday.

Moutons buying PSG shares.. Always a good sign.

-- Keith McLachlan (@keithmclachlan) October 29, 2018