to join the discussion
MST taking a knock today at R14.93, down 2.1%, but the tech retail space is getting hammered across the board. Comparable players like Bytes Technology and Pinnacle show similar weakness, so this looks more sector-wide profit-taking than company-specific drama.
been through the latest financials and mustek's turning over decent volumes in distribution but the margin compression is real, especially competing against takealot and the bigger IT resellers. rand weakness should help them on import costs though which might show up next reporting cycle. holding for now because hardware distrib isn't sexy but it's stable cash flow business if they can keep clients locked in.
MST FLYING UNDER THE RADAR!! HARDWARE DISTRO SPACE IS PRINTING MONEY RIGHT NOW AND MUSTEK SITTING AT R15.25 WITH MASSIVE UPSIDE, LOOK WHAT HAPPENED TO DISLOGISTICS WHEN THEY SORTED THEIR SUPPLY CHAIN!! BEST IS YET TO COME!!
MST's been getting hammered but the distribution model is solid when the cycle turns. Hardware refresh cycles are real, corporates still need kit. At R15.25 you're not paying a premium like you would for the sexy software plays, and that's the point. Long-term if load-shedding doesn't kill local demand completely, this recovers.
@momentumtracker_jse margins are the real story here, rand pressure is brutal for distributors
MST getting absolutely smashed by rand weakness and import pressure. Hardware distributors are margin-squeezed right now with our currency in the toilet. Long-term view hasn't changed but these near-term headwinds are real, inflation hitting input costs hard. I'll keep holding as long as it takes though, the local tech distribution space isn't going anywhere.
@momentumtracker_jse exactly, corporates gonna keep buying generators and backup gear
@momentumtracker_jse margins are the real killer though, rand ate them alive
rand weakness is killing the margin story for imports, they're exposed there. but if corporates keep spending on infrastructure and cooling gear because of load shedding, volume could surprise. long-term view hasn't changed, distribution is cyclical but they're not going anywhere. sitting tight.
reading through the latest sens on MST and margin compression is real, hardware distribution is getting squeezed from every angle. at R14.65 the valuation assumes they figure out the supply chain mess and get back to 2019 volumes, which feels optimistic given the rand weakness killing imports. rather wait for a proper capitulation before adding here.
MST closed at R14.65 yesterday, still sitting well below the R20 range from a couple years back. Distribution play in this space is tough with the rand getting smashed but hardware demand from corporates should hold up if load shedding keeps pushing capex spend. Watching to see if they can stabilize margins and get volume back to pre-covid levels.
MST taking a 5.72% kicking today down to R13.52, but the distribution business is still chugging along with decent cash flow, so I'm holding through this noise rather than panic selling.
MST's 1.28% pullback to R1460 presents a tactical entry opportunity for call spreads given the elevated implied volatility in the tech sector. The setup favors premium collection strategies rather than directional exposure at current levels.
Grabbed some MST at R1479 today after it popped 2.71%, reminds me of chasing pumps in crypto but at least this time I'm checking the actual earnings first.
The 2.71% jump in MST today feels disconnected from the governance concerns that have plagued this business. Mustek's supply chain opacity and minimal disclosure around their e-waste recycling practices contradict the sustainability narrative retailers are pushing, so I'm skeptic
MST jumped 4.86% today to R1489, wonder what news triggered that spike. Tech stocks can be moody so I'm keen to see if this holds or if it's just a quick pop.
MST's down 5% today but the distribution and IT services model remains structurally sound with their exposure to enterprise refresh cycles and software licensing providing steady recurring revenue streams. At current levels, the valuation warrants a closer look at their latest SE
The 5% decline today feels like capitulation rather than fundamental deterioration, particularly given that tech hardware distributors face cyclical margin compression that typically recovers within 12-18 months as inventory normalizes. Before chasing the downside further, I'd wa