Two to Buy with None to Sell this week!

by , 17 October 2017
Two to Buy with None to Sell this week!
The Rand strengthened 3.3% last week on a weaker US Dollar, higher appetite for risk assets and a court ruling indicating President Zuma could face corruption charges - that were previously withdrawn.

Support for Cyril Ramaphosa as the ANC's next leader is growing. A Bloomberg survey of 26 political analysts has 16 of them expecting Ramaphosa to pip Dlamini-Zuma - with which we concur. A Ramphosa victory would improve investor sentiment and lend support to the Rand.

Global growth continues to tick higher. Only 13 countries are forecast to have negative growth this year, with that number forecast to drop to 6 next year, the lowest since 1981.

US Fed to take a slow and steady approach to raising interest rates to insure inflation continues to remain around the targeted 2% level. One more interest rate increase before year end is likely and we should see them reducing their balance sheet from next month.



Two to Buy
 
Implats  - Acquisitions to ride the rising PGM basket price
 
The price of Palladium (one of the Platinum Group Metals) has pushed through the $1,000 mark for the first time since 2001. While Palladium and Platinum are similar, Palladium has risen 44% this year due to a switch back to petrol vehicles after the emissions scandal.
 
While the price of platinum has been range bound, palladium is shooting the lights out increasing the sales price of the PGM basket.
 
Potential acquisitions are on the cards, with the Waterberg Development Project announced today, the company is taking a cautious approach to expanding.
 
Buy below R32.50
 
Sibanye – A Precious Metal Miner ready to rally
 
Sibanye is transforming itself from a Gold only miner to a diversified precious metal miner. And it recently announced it has averted the closure of the Rustenburg and Aquarius shafts that were marginal. This has assisted in an increased product forecast for 2017 while contributing to lower costs.
 
Precious metal prices are rising and we see potential for a rally to above R20.
 
Buy SGL below R17.
 
Prodigy Global Portfolio: Simple, Efficient and Effective.
 
The performance of our offshore investment portfolio for the year to date is pleasing with a return of 17,8% in USD (outperforming the MSCI world index by 6,4%).
 
Providing a simple solution with stable performance has been our goal and we are pleased it has delivered. 
 
Access to our Global Portfolio requires direct offshore investment. Contact Prodigy for assistance.
 
None to Sell these week, up trend remains in place. 
 
 
 
 
Shorter Term Ideas
  • Platinum: Up 3.28% in a week. Place stop loss at $930 and target at $995.
  • PSG: Hitting resistance at R260. Place stop loss at R250 to lock in a 6.38% gain.
  • Tigerbrands: Raise target to R405 and stop loss to R390 for a minimum 4.70% return.
  • Aspen: Stop loss breached, trade closed with a 3.28% loss.
     
Long Term Ideas      
  • Merafe: Buy dips below R1.55
  • Steinhoff: Price consolidating at support. Buy.
  • Jubilee: Nicely in the money. Hold.
  • African Rainbow: Up just under 20% in 2 months. Hold.
  • AECI: Buy dips below R105.00
  • MTN: Range bound, buy below R122.50.
  • Glencore: Up over 15.5%. Hold
  • Wescoal: Long term buy. Add below R2.15
  • Naspers: Boost through R3,000. Hold
  • Richemont: Open gain of 18.50, maintain stop loss at R120. Hold
 
Protected Offshore Investments:
 
We have three attractive Structured Products closing this year. Typically, you get protection through a 100% capital guarantee and geared upside to developed markets over 3 to 5 years. Please contact my colleague Gavin McCarter without delay as deadlines are applied. gavin@prodigyam.co.za
 

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