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
These days with the internet and the wealth of information out there everyone wants to run their own portfolio. And who better to do that, as nobody else cares more for your money than yourself?
The fact is, anyone can manage a stock portfolio.
Just like anyone can drive a car.
But in the same way, it doesn't mean you won't hit a tree or slide off of the road every once in a while.
... ››› more
Investing in penny stocks can be an extremely profitable venture, but with that comes higher risks.
This means it's vital you handle your portfolio and risks to deal with this.
So how can you go about doing this?
Read on to find out…
How to manage your penny stocks portfolio
Of the portion of your portfolio you decide to invest in penny stocks, you should aim to invest in be... ››› more
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
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
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
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
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
The gold price hit $1,354. It's the first time that it's above $1,300 since 2014! That's big news. And since the Brexit, all you hear is how investors are fleeing to the safety of gold.
But I'm much more excited about another precious metal right now.
I'm talking about platinum of course…
The platinum price started 2016 at $820/ounce. Today it's trading $280 higher at $1,100 per ounc... ››› more
There are few things more satisfying and motivating than meeting an investment expert in person. Not many people get the opportunity to meet their investment gurus and ask all their burning investment questions.
Well, today I want to tell you that you could be one of the privileged few investors to shake hands with Francois Joubert, the editor of the groundbreaking publication Red Hot Penny Sh... ››› more
Investing in the stock market can be a challenge, especially if you're just getting started. The difficulty is, you don't know what shares to buy, how long to hold them or if the shares you're adding to your investment portfolio are expected to deliver any returns at all.
As a result, most new and even experienced investors turn to the big blue chip companies. You see these massive companies h... ››› more
You've heard the term ‘Buy when there's blood on the streets'.
This is contrarian investing at its hear. But it's been proven true time and again.
In fact, if you'd simply bought a simple ETF like Satrix 40 following the 2008 financial crisis, you'd have made around 70%.
Investing in individual shares following the same crisis would've made you 200%, 300% and in many cases, 600% or m... ››› more
As a member of the FSPInvest team, I have the privilege to speak to some of the smartest investors in the country. One of these expert financial minds is Francois Joubert, the editor of Red Hot Penny Shares.
The shares Francois recommend in this newsletter all cost less than R10 per share. They are so small that most people simply tend to ignore them.
It's like Francois says, “You see, t... ››› more
You want to make money from the fastest growing shares on the JSE? Check.
You have a brokerage account and you're ready to invest? Check.
You've got cash to put into your first investment? Check.
Now all you need to do is find that first penny share with explosive potential to invest in.
That's why I've created this stock checklist to help you get your penny share portfolio off the gro... ››› more
Have you ever been warned by a friend or relative to stay away from the stock market?
Or, has a broker warned you that “those penny shares are incredibly dangerous”?
Have you been told to rather invest in an ETF or a unit trust because it's “much safer”?
Well, don’t listen to any of that rubbish!
Small cap shares can easily move 5%, 10% or even 20% on a single day. That’s ... ››› more
If you try to follow big news headlines and invest accordingly you'll be left entering every investment you make late.
That's why I love investing in Penny Shares.
It's contrarian. It's investing against the crowd. Most of all it's about investing in companies that don't feature in the news at all…
Here at Red Hot Penny Shares I scour the markets for little unknown companies with mas... ››› more
Yeah, yeah, we all know the story of how Shoprite was a R1 share in 1994 and shot up to R200 in 2012. Or how Capitec was 91c in 2002 and today it is trading at R430.
You might have even heard me speak about how I first invested in Adapt IT at R1.30 and today it is at R13.
But that's not what I want to tell you about today.
I want to tell you why you shouldn't invest in small cap shares…... ››› more
If you want to invest on the stock market, you may have discovered that there are around 400 stocks listed on the Johannesburg Stock Exchange.
This means there are potentially 400 stocks for you to invest in.
The smallest stocks on the stock market are penny stocks.
So what exactly are penny stocks? And how can you go about investing in them?
Read on to find out…
What are penny... ››› more
Right now, you're facing an incredible opportunity.
You've got the chance to buy a handful of top quality, penny shares on the JSE right now, all at a steal.
These companies are so cheap, they're selling at multiple times the average dividend yield of the average JSE share.
But it won't be that way for long. So listen up. This is what you need to do…
The JSEs smallest companies are of... ››› more
If you want to invest in penny stocks, you need to have a strategy to follow.
Your strategy should help to lower your overall risk investing in penny stocks and help you filter through the penny stock laggards to find the best ones on the market.
So what should you include in your penny stock investment strategy?
Read on to find out…
Perfecting your penny stock investment strategy... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
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.