Our opinion on the current state of BEL

Bell (BEL) is a prominent manufacturer and distributor of heavy equipment, specializing in earth-moving machinery for industries such as mining, construction, agriculture, and waste management. The company, which produces articulated dump trucks exported globally from South Africa and Germany, has faced challenges due to the slowdown in construction since 2008 and the decline of the mining industry.

Despite these challenges, Bell has maintained a diversified product range, with dealerships for various global manufacturers, offering over 120 products. Approximately 60% of its business comes from international markets, with the company employing 3,200 people, primarily in South Africa.

Recently, CEO Gary Bell hinted at the possibility of delisting the company, with 1A Bell expressing interest in acquiring a further 31.4% stake at a discounted price of R10 per share. This move sparked discussions among minority shareholders, who argue that the board has a fiduciary duty to consider all options, including selling the company to the highest bidder.

In its financial results for the year ending December 31, 2023, Bell reported robust performance, with revenue increasing by 32% and headline earnings per share (HEPS) rising by 69%. The company's net asset value (NAV) also saw a significant increase, rising by 21% to 5527c per share.

With an average daily trading volume of over R1 million, Bell's shares are actively traded, making them suitable for private investors. An on-balance-volume (OBV) buy signal was observed on September 7, 2023, at 1752c per share, and since then, the share price has appreciated to 2480c. This positive momentum suggests growing investor confidence in Bell's prospects.