Naspers has high margins, a good ROE and its core operations are very cash generative. Naspers is a solid company with a lot of growth potential, primarily through its technology investments in emerging markets. While the growth rates in these investments are high; it also has an above average risk profile. Given the nature of many of the group's businesses, gauging a sustainable growth accurately is challenging, but we feel the group is well positioned in a number of exciting high growth sectors. Its investment in Tencent (listed on the Hang Seng) alone is worth around 80% of the current Naspers share price. Accordingly, we remind investors that a significant portion of our valuation is dependent on Tencent's performance on the Hang Seng and a stable exchange rate. We do however feel that Naspers's valuation seems stretched at current levels and would recommend short term investors to sell their shares.