SEP closing at R1.85 is interesting given the software services space in SA is pretty starved for local plays. Revenue growth is there but margins are getting squeezed, thats the real question mark. Catalysts moving forward matter, any big contract wins could shift the dial quick. Risk reward is very compelling at these levels if they can sort the margin story.
read their last set of numbers and margins are actually the thing keeping me interested, not what's spooking people. if they're squeezing margin on higher revenue that usually means scale issues or pricing pressure, but in software services that often sorts itself once you hit critical mass on the contract side. at R1.85 with local tech this thin on the bourse, the risk reward is there if management actually executes on the pipeline they mentioned in the MD&A.