@GG - Normally you make sensible arguments but this time you are blabbing without looking into WHY ScanGroup has the cash. Mwanahisa has done a great job in explaining the situation.

Surely,a little research would have told you that ScanGroup sold the shares to WPP in late 2008 so unless they had acquisitions lined up ready to go in 2008,the cash would show up on their balance sheet. Furthermore,the WPP deal probably started much earlier & concluded in late 2008. And the economic situation had taken a turn for the worse. ScanGroup is SMART by waiting for prices for acquirees to drop. And they will. In the meantime... enjoy the high rates... Forget bank deposits,if they are very smart (they are)... they would have gone for the liquid & high-yielding IFB.

Greedy when others are fearful,Very fearful when others are greedy - to paraphrase WB

Gatheuzi, do you still have these? At 63, its trading at a P.E of nearly 35, way above the industry average (at a glance) How far can it go?

@vvs am also perplexed. Surely these prices are not supported by earnings potential

Anyway, I dont have ScanGroup... so I can't participate in the gain! I will look at others shares which have much lower forward P/Es...

I forgot to mention that my entry was at 26 around Mar this year.