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
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
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
Car sales are crashing.
Since 2014 they've been in a straight downtrend.
In fact, the latest figures from July 2016 show a drop of 17% (9,222 less vehicles) in vehicles sold compared to July 2015.
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Between October 2015 and mid-January 2016 the JSE Resources index crashed 38%. Mining shares were out of favour more than they've ever been.
Since then, the index has recovered some of these losses, becoming one of the best performing sectors on the JSE for 2016.
In fact, since the resource index's January low, it's up 40% for the year so far!
But that doesn't mean you can just up and ... ››› more
I don't think there's a thing as the “perfect” stock. Yes there are stocks that demonstrate consistent profit growth, churn out cash flow and reward shareholders on a yearly basis.
But every stock has its flaws.
Whether it's way too expensive, over-hyped, worryingly cheap or just run out of steam, investors could easily fall for buying the a stock that looks attractive but ends up bust... ››› more
Yesterday I got an unexpected SMS from my cousin in Cape Town. She told me about a friend who sent her the “hottest” investment tip of the year so far.
She asked me to urgently check my email to confirm this, because she only had a few hours to buy into the share.
When I checked the email, I got a bit of a fright. She wasn't the only person in the thread. More than 300 people received ... ››› more
The mining sector is in talks with mining minister Mosebenzi Zwane on 25 and 26 April 2016.
This comes after the release of the new “Draft mining charter”.
In the draft mining charter the minister of mining set new requirements for mining companies in South Africa.
You might think this doesn't affect you as an investor. But it does.
Even if you're not invested in... ››› more
Over the years I've noticed investors tend to ask the same things, but even more so - They make the same mistakes as well. It all comes down to human nature I guess.
That's why today I want to show you how to avoid the three most common mistakes I see investors make, over and over.
Classic Investment Mistake #1 – Investors bet the bank when they shouldn’t!
Penny shares can go ... ››› more
During this month I spent some time at the offices of one of our broker partners.
I met with asset managers, analysts and traders.
This definitely helped me keep in touch with the industry…
But it was also very insightful in another way…
While I was there the current market cor rection we're experiencing began.
Being in the midst of the market day in and day out you become less ... ››› more
Pallinghurst Resources is a private equity company focusing on companies within the mining sector. The company has a listing on the Johannesburg Stock Exchange…
Full name: Pallinghurst Resources Limited
Short name: Pallingt
Sector: Investment instruments – equity investment instruments
Five top facts about Pallinghurst Resources
Pallinghurst Resources focus... ››› more
Hudaco Industries specialises in the importation and distribution of electrical and industrial products. The company has a listing on the Johannesburg Stock Exchange…
Full name: Hudaco Industries Limited
Short name: Hudaco
Sector: Industrial goods & services – industrial engineering
Five top facts about Hudaco Industries
Hudaco I... ››› more
Today saw the release of the RMB/BER business confidence index data for the third quarter of this year.
The data showed that the index is now sitting at levels not seen since 2011.
So what's putting pressure on the index?
Let's take a closer look…
Business confidence dips again
The business confidence index (BCI), which the Bureau for Economic Research conducts and Rand Merchan... ››› more
The Bank of America Merrill Lynch recently published new data that ranks countries according to how risky they are.
The ranking comes from how likely it is that a country will default on its sovereign debt.
South Africa ranks just outside the top ten.
Let's take a closer look at what this means for SA…
The risk of defaulting on sovereign debt
Bank of America Merrill Lynch’s ... ››› more
Aveng focuses on the construction, engineering and infrastructure sectors. The company has a listing on the Johannesburg Stock Exchange…
Full name: Aveng Limited
Short name: Aveng
Sector: Construction & materials – construction & materials
Five top facts about Aveng
Aveng employs over 28,000 people across its operations in Africa, Chile, Finland, the Middle... ››› more
Formed back in 1950, Assore is a mining company focusing on metals and minerals. The company has a listing on the Johannesburg Stock Exchange…
Full name: Assore Limited
Short name: Assore
Sector: Basic resources - mining
Five top facts about Assore
Assore is a holding company in the mining sector concentrating on metals and minerals. The company employs aroun... ››› more
As a South African, we're tired of waking up every day and reading the comedy politicians spew out. In some way it's very entertaining. But in another way, it's very worrying that these are the people that lead our country on a daily basis.
It's extremely worrying that we have government officials who have no clue what they're doing.
Yet we still have people standing up and delivering the... ››› more
The rand has had a very volatile year so far. This week it's already touched levels not seen for six-weeks.
The strong dollar has been putting pressure on the local currency. The impact of load shedding on economic growth is worrying investors too.
And next week, the gold mining sector begins wage talks. So what effect could this have on the rand?
Let's take a closer look at what's going ... ››› more
ETFs are the greatest aren't they?
They make it easy to start investing with as little as R250 a month.
They take all the ‘guesswork' out of investing and give you average (yet very good) performance year in and year out.
Whenever a new investor wants to stick their cash into an ETF the question is always “which one?”
And time and again the Satrix Divi pops up.
It's simple rea... ››› more
Exchange traded funds (ETFs) offer you a cost effective way to invest.
Through the different types of ETFs available, you can gain exposure to a number of different shares and sectors.
So what sort of ETFs are available to invest in?
Let's take a closer look…
ETFs that hold the largest companies of the JSE
Making up the Top 40 Index of the JSE are South Africa’s biggest comp... ››› more
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