Two to Buy and none to sell this week!

by , 03 October 2017
Two to Buy and none to sell this week!
PSG has pulled back to a good buying level around the R235 mark. We've been trading the R230/R270 range this year very well.

When you buy PSG you get exposure to a number of companies, like Capitec, now one of South Africa's “big 5” and growing by over 100,000 clients per month.

Through PSG, you also gain exposure to Curro and Studio, which has been unbundled from Curro and starts trading tomorrow under the ticker SDO. Buy below R235.

PSG has pulled back to a good buying level around the R235 mark. We’ve been trading the R230/R270 range this year very well.
 
When you buy PSG you get exposure to a number of companies, like Capitec, now one of South Africa’s “big 5” and growing by over 100,000 clients per month.
 
Through PSG, you also gain exposure to Curro and Studio, which has been unbundled from Curro and starts trading tomorrow under the ticker SDO. Buy below R235.
 
 
This little miner has halved its debt and as one of the lowest cost producers presents a nice buy right now
 
Quarter 4 European benchmark ferrochrome price has been settled 26.4% higher than Q3’s price at 139 US cents per pound. This is a welcome relief as the price was under pressure from oversupply in the second quarter of 2017.
 
Merafe’s is one of the lowest costs producers with cash cost per pound of around 60 US cents so this increase will boost profits.
 
Add to that, the reduction of Net debt by almost 50% and you have a company that is increasing the health of its balance sheet.
 
Strong earnings expected: Buy below R1.55
 
None to Sell!
 
 
What’s on our watch list?
 
Shorter Term Ideas
 
Nedbank: Interest rates weren’t cut, position closed.
 
Tigerbrands: Maintain long position. Buy below R375, target R400.
 
Aspen: Maintain short position, stop loss R315 and target R285.
 
Vodacom: Stop loss triggered.
 
Sell the Rand: This trade banked a 5.81% gain in 3 weeks, close your position.
 
Long Term Ideas 
 
Steinhoff: Back at support. Buy.
 
Jubilee: Open gain of 14.5%. Hold.
 
African Rainbow: Up 11.5% after banking a R6.50 dividend. Hold.
 
AECI: Price consolidation at support. Buy below R105.00
 
MTN: Consolidating at support. Buy below R122.50.
 
Glencore: Building support for a move higher, received a dividend last week. Hold
 
Wescoal: Long term buy. Add below R2.15
 
Naspers: Resistance at R3,000 being tested, a sustained break is imminent. Hold
 
Richemont: Stop loss increased to R120, to lock in gains. Hold
 
We remain positive on Tharisa, EOH, Famous Brands, Medi-Clinic, Coronation and Old Mutual. 
 
Gavin McCarter,
Senior Portfolio Manager, Prodigy Asset Management
 
 

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Two to Buy and none to sell this week!
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