These are the “widest discounts to sum of the parts I have tracked in many years; I see … excellent long term value here…”
These are the words from a fellow analyst regarding two specific JSE listed investment companies.
Following his statement, I had a deeper look at the two he refers to as well as other companies. And what I found is astounding.
Businesses are selling at 15%, ... ››› more
On Tuesday 13 February, the ANC held a press conference in which it officially recalled president Jacob Zuma.
The ANC National Executive Committee decided that Zuma, in the interest of the country and the ANC, should no longer be president of South Africa.
This doesn't mean Zuma is no longer president though…
The recall simply makes it public that the ANC leadership no longer wants Z... ››› more
It's a new year and, as customary, I'm sharing a couple of insights that I believe will shape the stock market, our economy, and the world we see around us every day.
2017 was a year dominated by two themes.
The first one being, politics, drove the South African economy, investor sentiment and our currency.
The second was probably a symptom of the first. Because politics dominated ever... ››› more
In the race to the world's first public company worth a Trillion Dollars, Apple is closer than ever!
Between November and December 2017, the company hit $900 billion - nearing the Trillion dollar mark…
With the IPhone, IPod and IPad - Apple has managed to become the largest company in the world!
But new, research points to the EV revolution being MUCH bigger!
The fact is, Electri... ››› more
I can remember my honeymoon like yesterday.
We were crazy in love.
And for months afterward this euphoric phase continued.
I could make no mistake in her eyes, nor she in mine. Everything was perfect.
Then suddenly reality struck. Our first big fight after getting married.
And suddenly we realized being married is tough, and the good times go hand in hand with the tough ones…... ››› more
During its December conference the ANC vowed that, it would expropriate land and put it in the hands of the people.
The news is full of headlines like:
ANC NEC wants land expropriation 'urgently'
The ANC is making false promises of land expropriation
#Ramaphosa says ruling party is committed to land expropriation
And I can already see the pictures ... ››› more
If there's no cash in a business, it's dead. The most recent spectacular crash in Steinhoff shares is proof of that.
It is no different for property.
If your property doesn't generate a positive cash flow - the investment is dead in the water.
Choosing to lose money isn't a valid investment strategy
It's all too often that I hear investors say “I'm not making money on the property ... ››› more
I've been looking at ways to reduce my donations to the Nkandla Fund (SARS income tax)…
I have no objection to pay tax - when the government that receives that money makes use of it responsibly. But that's not the case at this stage.
And by putting off paying tax (legally) I can get my money to work for me faster than when I give nearly half of that away to the tax man.
Now instead o... ››› more
On Friday 24 November S&P downgraded South Africa's long term local government bonds to junk rating.
The problem according to S&P is that government in recent years have focused merely on the distribution of income, instead of trying to grow our income…
“As a consequence, South Africa’s economy has stagnated and external competitiveness has eroded. We expect that offsetting fiscal m... ››› more
Northam Platinum CEO, Paul Dunne said in a recent interview with MiningMX “There's been a lot of hype around battery-powered EVs, but these will not replace the internal combustion engine for a number of reasons.”
Now I understand you ‘talk your book'. If you are a platinum miner, you want to ensure people know you are positive of the outlook for the industry you operate in.
But it's... ››› more
I'm sure you've heard it before - but you make money on a property the day you buy it.
That's because a good price means the rental income yield will be attractive, and it means your selling price can be competitive - whilst still raking in a profit.
That's why your homework before buying a property - and the negotiation process to buy the property are the single most important things you ... ››› more
The mainstream media will only tell you about the biggest of the big shares. You'll often hear about Naspers, Richemont and BHP Billiton.
And fund managers will make these big shares the centre points of their investment funds. That is - the Balanced Fund your advisor will suggest you invest in for retirement so you don't need to take much risk.
But that means you can expect 9%, 10% and if... ››› more
Lonmin has been one of the great stories of value destruction for investors.
Since my first warning about the company in 2012, it has lost 96% of its value.
Simply put - it's been a big one to avoid.
Crypto Revolution: How the rise of bitcoin and cryptocurrencies could turn every R2,000 you stake into R980k
My warnings on Lonmin since 2012
... ››› more
The rand started out 2017 at 13.78, and quickly strengthened to R12.42 in mid-March.
This would've negated strengthening commodity prices world-wide.
The price of copper, ferrochrome, gold and aluminium all rose during 2017.
But - fortunately for South African producers of these commodities the rand weakened yet again, now trading in the R14 range.
And that means all of these commo... ››› more
When you invest in shares there are two things that can make you money - capital appreciation as the share price rises. And dividends putting hard cash in your pocket.
Most investors focus mostly on capital appreciation.
But the fact is dividends can make you massive returns.
If for instance you bought Adapt IT in 2009, you'd have paid 44c per share. Since then the company has paid out... ››› more
What if I told you there's a way to find shares that consistently outperform the market?
Sounds too good to be true.
But the fact is, fourteen shares I invested in between 2010 and 2016 provided me with returns outstripping 100% each….
In their 2013 paper titled “Fundamental Based Market Strategies”, Dr Angelo Aspris (research leader), Sean Foley, (researcher), Nigel Finch, and Z... ››› more
March 2009 - that was the first time I ever bought a share…
It was Old Mutual. And while Old Mutual was a massive company, the 2008 financial crisis decimated it, and the share became a ‘penny stock'.
I bought my first shares in the company for 603c, with the money I made from vacation work as a student at the mine I had a bursary with. I bought 990 shares with around R6,000.
By No... ››› more
In the past six months, a little known JSE listed company, Insimbi, is up nearly 50%.
And on 26 September 2017, it announced its revenue increased 247%, and earnings per share increased 142%.
Growing profits by as much as 142% in an economy that's in recession is nearly impossible.
But Insimbi achieved this - how you ask?
Well, the company made a smart acquisition at the end of... ››› more
Throughout 2016 and early 2017 Rolfes had a great run, up from R2.76 to a high of R5.
But the share has suddenly dropped in the past two weeks.
A number of investors and analysts attribute this to the fact that the company hasn't released a trading statement.
So what does a trading statement have to do with share price?
The JSE requires companies to release trading statemen... ››› more
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
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We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
Remember: Never invest more than you can afford to spare and that the value of any investment, and the income derived from it, can go down as well as up. The past is not necessarily a guide to future performance.
Editors or contributors may have an interest in investments commented on in this newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.