- 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]
- The one risk investors have complete control over, but most often overlook…
- Most types of risks for investors are almost impossible control.
Take politics for example - You have no control over what the Government says or does that could affect the markets.
But there's one type of risk an investor can control - The risk of paying too much for a stock.
Let me explain…
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This ... ››› more
- [26 September 2016]
- Why you should always look at the Price Earnings ratio before you invest
- When you're looking for a solid share to invest in, the company's Price Earnings Ratio (PE) is a great way to find a good investment.
You see, the PE ratio shows you the relationship between the price of a share and the profits the company is making.
But more importantly, the PE ratio reveals to you whether a share is cheap or expensive.
It could also tell you where the share's going (an... ››› more
- [25 May 2016]
- Four reasons why you shouldn't rely on the CAPE ratio
- The cyclically adjusted price earnings (CAPE) ratio is a way to measure if the stock market is looking cheap or expensive compared to its long-term trend.
The idea behind the ratio is you can use it to tell you if it's a good time to be in the stock market.
So what exactly is the CAPE ratio? And is it a good idea to use it?
Let's take a closer look…
What is the CAPE ratio?
To c... ››› more
- [23 September 2015]
- How does the dividend discount model measure up to value a stock?
- When it comes to financial ratios, the PE (price earnings) ratio is one of the most widely used. The PE ratio gives you a way of valuing a stock in a simple way.
Companies that are growing at a slow rate or have erratic profits should trade at a low PE ratio. Whilst companies that are growing quickly should trade at a higher PE ratio.
So what about other commonly used methods such as the div... ››› more
- [07 September 2015]
- Use this ratio to help you find the best shares to buy
- To find the best shares to buy, you need to do your research. You want to give your cash the best chance of future growth investing in shares.
So how can you uncover a good investment?
One common way of valuing a company is using the price earnings (PE) ratio. But the PE ratio has its flaws.
Read on to find out the downfalls of the PE ratio and what you should use instead…
What ... ››› more
- [14 July 2015]
- The key financial ratios you need to get to grips with
- If you're reading through financial news reports or company annual statements, you're likely to come across a number of different financial ratios.
Many of these ratios can be very useful in helping you make a decision about whether or not to invest in a company.
So what are the main financial ratios you need to know about? And what do they mean?
Read on to find out…
Four financia... ››› more
- [09 July 2015]
- Uncovering penny stocks: How to use the PE ratio when investing in shares
- If you want to start investing in penny stocks, you need to conduct thorough research first. This will help you uncover stocks with the best chance of future success.
One of the most commonly quoted financial ratios can be a good starting point. This is the price earnings (PE) ratio.
So how can you use it?
Read on to find out…
What is the PE ratio?
The PE ratio compare a compan... ››› more
- [23 April 2015]
- Investing for beginners: Everything you need to know about the PE ratio
- The price earnings (PE) ratio is one of the most quoted financial ratios.
But what is the PE ratio? And what does it tell you?
Read on to find out…
What is the PE ratio?
The PE ratio is the share price of a company divided by its current earnings per share (EPS)…
PE ratio = share price / earnings per share
In other words, it shows you the value of a company as a multipl... ››› more
- [23 March 2015]
- Optimise your profit potential by using this ratio
- Making money from investing in shares comes down to the price you pay and the price you sell.
To boost your chances of making a profit, you want to buy into shares when they're showing good value.
So how can you do this?
The price earnings (PE) ratio is one of the most widely used financial ratios for the job, but there's another one you can use to get a bigger picture…
What is t... ››› more
- [11 March 2015]
- Why you need to pay attention to the PE ratio of a penny stock
- Investing in penny stocks can prove to be a profitable endeavour. You can make money by investing in the right small company.
When you invest in a penny stock that's soaring, it can be hard to know when to bail out. You don't want to see your profits disappearing as the share price heads south.
That's what it's important to keep an eye on its PE (price earnings) ratio.
Let's take a closer... ››› more
- [12 September 2014]
- How to use the PE ratio to find undervalued shares
- On the face of it, investing in shares should be easy. You just need to find undervalued shares and wait for them to rise in price.
Numerous studies over the years have shown that following an investment strategy of buying shares for less than they're worth is beneficial. It's just a case of waiting and being patient.
Value investing should beat the market's performance over the long-term.
... ››› more
- [08 September 2014]
- How much further can this bull market rage before it crashes?
- “Francois, I'm no investment expert, but I immerse myself in economic and household data everyday. And I just can't see what it is that's pushing growth for companies any further. Where is the stock market going to from here?”
That's the gist of a discussion I had with a Coca-Cola executive at a wine tasting last night. He's in charge of South Africa's strategy and planning - And he's really... ››› more
- [29 August 2014]
- Delving into the workings of shares: The difference between multiple expansion and multiple compression
- When you invest, you want the price of the shares to rise. Whatever your investment window is, you hope the price rises and you'll make a profit.
But there are underlying factors at work with share prices. It's not all down to the financial performance of a company. There are factors outside of its control that can have a bearing on the price.
To understand these, you need to get to grips wi... ››› more
- [22 August 2014]
- Fundamental analysis revealed: Here are the four top financial ratios to find the best stocks to invest in
- Fundamental analysis involves delving through all the available information you can get your hands on about a specific company.
One of the key aspects of fundamental analysis is using financial ratios to unearth what's really going on in a company's financials. And to work out whether it's worthy of your investment.
So what financial ratios should you use?
Read on to find out the key fin... ››› more
- [18 August 2014]
- How you can use the CAPE ratio to improve your returns
- The cyclically adjusted price earnings (CAPE) ratio shows you smoothed out earnings over a ten year period. You can use CAPE to work out whether investors are paying a lot or a little for earnings at the moment. Research done found that, on a broad basis, the CAPE ratio was right. Let's take a closer look at what the research showed…
The results from using the CAPE ratio are impressive
Resea... ››› more
- [27 June 2014]
- If a company is good enough, can you pay too much for its shares?
- Buying into a fantastic company has the potential to turn into a terrible investment if you buy at the wrong price. It's crucial you don't pay too much for any share. Read on to find out why…
The importance of not overpaying for shares
Let’s illustrate this with the help of an example…
Company ABC is a solid company. It comes with a great brand and great profit margins. The company’... ››› more
- [06 June 2014]
- How to use the PE ratio when investing in penny stocks
- If you're hunting for penny stocks to invest in, you'll probably start off with a long list of potential buys. As you research the companies, this list will become shorter. This research could include looking at company fundamentals, such as financial figures. Then it's time to have a look at price earnings (PE) ratios. So what are you looking for with the PE ratio? And how can you apply it to inv... ››› more
- [24 April 2014]
- The biggest lie in stock market history: While you think you're making money, this company is sucking it out of your pocket
- A couple of days ago an “Equity Report” was delivered to my email box.
It was written by a prominent analyst I often follow for views on stocks.
In short, the report had a BUY recommendation on Curro Holdings.
Now don't get me wrong. I think Curro is a great company and good investment idea. I also think the people managing the business are top notch. And as part of the South African ... ››› more
- [22 April 2014]
- Invest in shares on the cheap with these three strategies
- If you're a value investor, you're looking for beaten down companies trading at value prices. There are a number of different ways to uncover the best undervalued companies trading at the best prices with the best potential. Here are three common strategies you could try out…
Get a 72 hour head-start on everyone else…
Let TV show pun... ››› more
- [17 April 2014]
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