Francois Joubert, Editor, Red Hot Penny Shares
- The one industry I'm most excited about for 2017…
- As I predicted last year, 2016 was a year of consolidation. Our market went nowhere. But shares are much cheaper today than they were a year ago.
And that makes me optimistic about 2017.
But there's one industry in particular that I've got my eyes on.
It was arguably the worst sector for 2016.
One of the worst droughts in decades hit South Africa. Farmers lost crop... ››› more
- [18 January 2017]
- “Francois, should I buy this property as an investment?” Three property investment principles that'll make you money in the long run
- “Francois, our neighbour wants to sell his house. We'd like to build a little property nest egg of our own. Should we buy his property?”
That's a question I received from a family member over the holidays.
I'm sure you've been faced with a similar situation.
Looking at a property that's for sale and wondering whether it would be a good idea to buy it and get started with your very own... ››› more
- [11 January 2017]
- Five things to consider when purchasing your next property
- When you first decide to invest in a property the excitement pumps you up. Your heart starts racing, you already see the cash rolling in…
But before your ambitions run away with your good judgement you should take a step back and evaluate whether the property you're looking to invest in will provide you with growth - or is it a cash-trap that'll suck your wallet dry.
What to look for in ... ››› more
- [15 December 2016]
- The five most important economic indicators you should know about and why the rest doesn't matter
- The producer price index, non-farm payrolls, new housing starts, gross domestic product….
The list of economic indicators released monthly is massive.
The South African Reserve Bank alone releases a four-page report with more than 110 different economic indicators each month. That's not even considering international indicators.
So, which of these indicators should you keep an eye on, a... ››› more
- [07 December 2016]
- The JSE is overvalued, should I sell?
- The JSE All-Share Index is just 10% off from its all-time high.
It's sitting around the highest PE level of all time for the index, at 23.24.
At the same time, US markets are at all-time highs, and interest rates are threatening to go up.
With this in mind, I was recently asked by an investor, whether the JSE is overvalued and set for a massive correction.
So, should you hold on or sel... ››› more
- [01 December 2016]
- They don't have a clue what they're telling you…
- “Trump will be great for business”
“Trump will make you, and me, richer”
“15 industries that will be affected by a Trump presidency”
Trump. Trump. Trump.
It's the buzz word right now.
Everyday there's a new article on Moneyweb, News24 and Bloomberg telling us how Trump will affect business, the stock market and even the world.
They're telling you this, without a clue ... ››› more
- [24 November 2016]
- Four things I wish I'd known before I started investing in property
- I bought my first rental property at the age of 22. Luckily it turned out a great investment.
But since then I've learnt a lot.
Truth be told, there's a heap of things I wish someone had told me about when I first got started in property back then.
The time, the money it could've saved me... I sure as heck would have gone a lot further a lot faster if I'd had a clue about some things.
... ››› more
- [16 November 2016]
- Is your rental property standing empty? Here are the questions you need to ask yourself to ensure zero vacancies
- Over the past six years I've worked with many estate agents looking to manage my rental properties. And whenever it took time to fill up an empty apartment they'd tell me “the market is slow this time of year”.
They weren't all lying to me. Considering the post-2008 property market it hasn't been smooth sailing for anyone.
South Africa's economy is struggling and people are finding it ha... ››› more
- [10 November 2016]
- The last high-profile listing jumped 26% in less than two months - Should you jump into this new listing?
- Dischem is due to list on the JSE on 18 November 2016.
The company shared that it'll probably list at a price of R16.25 - R20.25. If demand for its shares is too high, it could increase the listing price.
Now, I must say, Dischem is a great business. It's doubled its number of stores since 2010, and tripled them since 2008.
It's clear that Dischem can take major market share from other co... ››› more
- [03 November 2016]
- SUSPENDED! You stand to lose your entire investment
- Right now, there are at least 26 suspended shares on the JSE.
If you own one of them, you'll know you can't sell your shares and there's no hope of growth coming from them.
If you're incredibly lucky you might receive cents on the rand for your investment.
But, if history is anything to go by, your cash will be tied up for years, and you might as well write off your entire investment!
... ››› more
- [27 October 2016]
- Why I'm bullish on the Wescoal share price
- On 29 September 2016 Wescoal announced it would issue 124,995,373 new shares to a BEE investor, for an amount of R211,410,862.
At the time Wescoal's entire market cap was R440 million. So this is a big deal - it is nearly 50% of Wescoal's total share capital being added.
Usually a deal that dilutes earnings as much as this one will, is a bad thing.
Shareholders don't like it.
But since... ››› more
- [20 October 2016]
- Don't put your mind on this investment ‘sugar rush'
- I'm sure you've seen what too much sugar does to a three-year-old…
They become hyper-awctive. They stop listening to all reason.
And as soon as the effect of sugar wears off, they hit a low. Until the next hit of sweetness.
You might be doing the same thing to yourself when you invest.
No, it's not that you're adding too much sugar to your coffee.
The mistake you might be mak... ››› more
- [12 October 2016]
- South Africa's deep mines are dying - but these companies are set to profit big time!
- South Africa sits with the ‘achievement' of having 8 out of the world's ten deepest mines.
While this is clearly an achievement in engineering - it's a problem specifically for our gold mining industry.
Production costs have skyrocketed, accidents in the deep mines make it even more difficult to profit.
In fact, in the 1970's South Africa produced as much as 80% of the world's gold,... ››› more
- [05 October 2016]
- How these penny shares grow profits by 30%, 50% while the JSE moves 1% for the year!
- The JSE All Share Index is up 1% for the year so far.
The Top 40 index, representative of the most ‘stable' shares on our market is down a miserable 2.25% since 29 December 2015.
And our economy is struggling.
It's fair to say that 2016's been a tough year. Many companies are losing money (or at least making smaller profits), and very few shares are up.
But there are a select gro... ››› more
- [28 September 2016]
- These two stocks could also be victims of the #Feesmustfall movement
- I'm not about to go into a political rant about the violence on university campuses or about the pros and cons of having free higher education for all.
What I want to talk about is the newest campaign that just happened - on the back of #FeesMustFall. It's called #DataFeesMustFall!
Thousands of people are unhappy with the data fees they're being charged by South African cell phone ... ››› more
- [21 September 2016]
- Your stokvel could grow your bank account all the way to Zero!
- I'm really concerned…
I just came across a group of investors. 29,595 people to be exact.
These investors are all part of a group called “It's all about Online Stokvels”.
Don't get me wrong. A stokvel is a great thing. A group of people putting their funds together, investing it, and sharing the returns when they're needed.
But what I've seen on this group isn't real ‘Stokve... ››› more
- [14 September 2016]
- Mr Price crashes 27% in two days thanks to the debt bubble's slow puncture - here's three shares you need to avoid
- In 2013 I warned investors that African Bank's drop in profits was the first ‘symptom' of a slow puncture for the South African Debt Bubble…
I told investors I believed many of the unsecured lenders and credit retailers will get themselves into trouble, but Capitec would prevail.
At the time African Bank traded at R22 a share.
By early July 2014 I called African Bank's imminent bankrupt... ››› more
- [07 September 2016]
- How to become a property developer and landlord - overnight!
- There's no denying it. Property is one of the best performing sectors of the JSE, year in, and year out.
In fact, a quick look at the SAPY property index shows that it returned 1,035% between the start of August 2004 and August 2016.
In comparison the JSE All-Share index returned 626% including dividends…
Clearly property is a top performing sector.
What's even better - with list... ››› more
- [31 August 2016]
- The world's next great investment megatrend
- 89 million babies were born around the world this year.
In the same time, 37 million people passed away.
That means the world's population grew by more than 52 million people in only eight months!
That's the equivalent of South Africa's population added to the world.
Imagine that, an entire country gets added to the world every 8 months!
And all of these people need an education,... ››› more
- [17 August 2016]
- The top penny stocks to buy after this earnings season
- Now that July's wrapped up, this year's second to last ‘earnings season' has come to an end.
Considering the South African economy is teetering on the edge of a recession, results haven't been as great as investors would've liked.
In fact, 14 out of the last 25 companies to publish results have been negative growth.
Nearly two out of every three companies are seeing shrinking profits or... ››› more
- [11 August 2016]