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
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
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
Please don't let your portfolio fall because of this single mistake…
In 2014, I got a mail from an investor:
I'm not investing in a single investment recommendation of yours again. I've bought Mr Price shares with my whole portfolio. And at the rate it's going now, I'll retire in a few short years.
I bought Mr Price at R136 in February, and now that it's August, the sha... ››› more
As an advisor to the South African Investor board I deal with investors that are looking for long term returns that'll help them live, and retire securely.
That means we typically look at companies like Vodacom, Naspers, Bidvest and the like.
Large blue-chip shares that have been around for years, and will continue to be there for years to come.
Recommending these large companies is th... ››› more
In a recent report from ETF.com data released shows that the US have had $250 billion worth of cash inflows into ETF's during 2017 alone!
According to an estimate by The New Yorker, around 20 percent of the market in the US is made up out of JUST ETF's.
And “When you factor in “closet indexing”—when individual or institutional investors pursue indexing strategies without declaring... ››› more
There are a few things with trading that worry me.
The first is when the internet connection cuts out when I'm trying to get into a trade or when I modify my trading levels.
Second, is when the market environment goes into a sideways range where no matter whether we buy or sell - we lose either way.
And third, is when my subscribers write to me and tell me about the worst possible trading... ››› more
What if I told you, that you could get a big business for free? You don't have to put money down, but you'd own a portion of a franchise store, a farm or a factory…
Sounds too good to be true.
But the fact is, right now there are scores of opportunities like this on the JSE.
I call them “No money down shares”.
Simply put, these are companies where if you pay for a portion of ... ››› more
Over the past three years, the JSE's Financial index would've made you around 7%.
The JSE's Industrial's index would've returned around 27%, and had you invested in the Resources Index, you'd have lost a whopping 38% over the same period.
Clearly, you need to pay attention to where you're investing if you want to make money in today's tough market.
So, as we're heading into the last qu... ››› more
Mustek grew cash generation by 30% - Mustek is an IT services and wholesaler. The company grew cash generated by operations by a whopping 30.7% to R228 million for the year.
Revenue was flat, and profits grew from 74cps to 80.32cps.
These earnings figures put the company on a PE ratio of 5.97, with the JSE average around 20!
You'll also receive a dividend of 16cps (compared to 15cps la... ››› more
Onelogix released results for the year ended May 2017 on 24 August.
As I expected the company posted strong results.
Considering South Africa is in a recession, and the company's main market is connected to car sales (which fell steeply in the second quarter of 2017), results are incredible!
Onelogix results are as follows:
Revenue up 12% from R1.77 billion to R1.99 billion
... ››› more
The northern half of South Africa had good rains in the past rainy season, and the rains predicted for this summer are also decent.
The Western and Northern Cape however still haven't had the rain (and snow) needed to top up dam levels and put them in the clear.
So how is this affecting businesses?
Construction in Cape Town is struggling
The construction industry in the We... ››› 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
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
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
Ah South Africans! Blinded by politics, multicultural in every way, revered by the world... But man, do we suck when it comes to money?
We're a country of proud people. We've survived some of the most severe political turbulences the world has ever seen. We beat it all. Despite all the challenges our country still faces, we have a proud heritage.
Maybe that's why so many of us refuse to adm... ››› 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
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
Last week, I sat down with Francois Joubert, the editor of Red Hot Penny Shares. I wanted to find out what makes his penny share selection techniques so successful.
After all, he's the expert that delivered exceptional investment returns like these five Penny Share recommendations that could have made you a fortune in almost no time:
• Transport Company SantovaLogistics (SNV:JSE) rose 221... ››› 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.