Bidvest (JSE: BVT)

@jozi_janet a dip or the start of something bigger, you reckon?

222.07 now. Down a bit today.

R222.07 now, bit of a dip today lol

R222.07 now, bit of selling today.

sorry if dumb question but what's the difference between buying bidvest shares and just putting money in a general sa fund?

with BVT at 226.64, how much would I need to actually buy some shares, like a starting amount?

is BVT a logistics company only or does it do other stuff that makes money too

Fair point, but the thing is, when the economy picks up even a bit, all that logistics stuff they do suddenly matters more. Right now it's quiet, ja, but I'm not selling at 223 when the upside could be decent once things improve.

so when BVT reports earnings, does the share price just jump up or does it take time to move?

@bear_naidoo what's the dividend per share though, if the earnings are flat does it still pay out decent cash?

BVT's basically the plumbing of SA supply chains, moving stuff around and handling logistics for everyone else. Problem is the macro's been rough and I don't see the earnings doing anything special, so 223 feels like you're paying for something that hasn't proven it can grow yet.

Exactly. Right now the economy's sluggish so companies aren't ordering as much stock, which means fewer deliveries for Bidvest to handle. Once things pick up and businesses start restocking properly, that's when the logistics side actually makes money and the share will move.

Pulled the latest results, cash position still solid through the downturn.

Distribution and logistics is how they move stuff around the country for other businesses, so they make money on every delivery, every warehouse, every contract. When the economy's ticking over, companies buy more stock and need faster delivery, so Bidvest gets busier and the share price tends to climb. When things slow down like now, fewer deliveries, less urgency, share sits flat or falls.

Distribution and logistics are boring until the economy picks up, then suddenly everyone needs them moving stuff faster. BVT's the kind of stock that works when things are actually humming, not in a recession.

@jim_jse4 spot on, logistics plays tend to lag the cycle though

@jim_jse4 ja that makes sense. logistics is boring but it pays

Bidvest basically moves stuff around the country for companies that need it moved, plus they do facility services and distribute products. Not sexy but when the economy's running they make decent money from it, and right now people seem to be noticing that again.

@oom_frik_explains exactly, and they've been consistent with payouts too

Balance sheet looks solid but the thing that worries me is whether retailers are actually ordering more stuff, or if they're just moving the same boxes around slower because the economy's flat. That's where Bidvest makes its money.