Buying shares at a significant discount provides some downside protection.
Knowing you bought R1 of assets for 79 cents gives you comfort, and one investment holding company is trading at exactly that.
While investment holding companies typical trade at a discount to their some of the parts value, when these companies sell or distribute assets, the benefit is received at full market value.
... ››› more
The rand lost 4% of its value in mere days last week.
At the same time, between 13 and 15 August the JSE lost 4% of its value.
As uncertainty at home and abroad causes this kind of volatility, there's a simple kind of investment that warrants a place in portfolios.
I'm talking about dividend paying stocks. The appeal is simple, dividend payers can provide investors with tangible returns (... ››› more
Last week was a busy week with the market sailing through a gauntlet of central bank meetings, escalating trade tensions and a historic meeting between the US and North Korea.
Surprisingly the JSE held up relatively well buoyed by a weaker Rand. We've also seen volatility (measured by the VIX) drop back towards 12, a level that signals the market might not be pricing in the risk of a “Trump ... ››› more
Penny shares are the black sheep of the investment market. Most investors ignore these shares because they simply don't know how to deal with them.
Penny shares are volatile - They'll be up one day and down the next. Their share prices tend to swing around violently leaving investors that are unprepared for this activity nervous and afraid of what the share price will do next.
But there ar... ››› more
Earlier today, Lonmin Plc announced its plan to raise $400 million through a rights issue.
The world's third largest platinum miner is taking steps to deal with the current commodity price slump, which has put pressure on its business.
Let's take a closer look at what's going on…
Lonmin is making changes to cope with the current climate
Lonmin [JSE:LON] wants to “raise $400 mill... ››› more
A penny stock's share price doesn't really tell you anything. It's simply the value of a company divided by the number of shares in circulation.
But one thing is for sure, you want to sell a penny stock for a higher price than you bought it for.
There are factors that impact a company's share price.
Let's take a closer look at the workings of a penny stock's share price…
Penny sto... ››› more
The risks associated with penny stocks may leave you wondering if they're worth considering. After all, there's a chance you'll invest in a dud and lose money.
But there are risks with investing in all shares on the stock market. And penny stocks can actually be the perfect investment for small, private investors.
Let's take a closer look…
Some of the negatives of penny stocks are ac... ››› more
South Africa might have been the world's biggest gold producer, but not anymore!
In 1970, South Africa produced over 67.7% of the world's gold production.
But now it's dropped down the scale, to number six!
And today, South Africa produces only around 7% of the world's gold.
This is shocking! And doesn't look like things are going to change soon
With our Gold production dropping a... ››› more
When you first start investing, one thing that can be quite confusing to begin with is the pricing of shares.
There's not just one price for a share, there are two. You buy shares at one price and you sell them at another price.
So how does this work when it comes to investing in shares?
Read on to find out…
The ins and outs of share prices
When you phone your broker or go onli... ››› more
At the moment, the news is full of a number of geopolitical events. These include the situations in Syria, Israel and Ukraine.
But should you worry about the impact on your portfolio?
Read on to find out…
As an investor, how should you react to geopolitical events?
The short answer is, you shouldn’t react to geopolitical events. And you can see why if you take a look at what’s... ››› more
The stock market is volatile. Share prices bob up and down from highs to lows. It's this volatility that makes the stock market risky. But it's also this risk you undertake when you invest that has the potential to make you money. So what's the best way to deal with stock market volatility? Read on to find out…
Strategy #1: Time
One of the best ways to cope with volatility is time in the mar... ››› more
When you invest in shares, you want the share price to rise. The more it rises, the larger your potential profit. But it's not all plain sailing on the stock market. Sometimes the prices of some shares just fall. A number of things can cause a share price to plummet. It can be both external and internal factors. Sometimes it's out with the control of the company. Other times it's because the compa... ››› more
Every year, you see thousands of analyst tips, and evaluations of different companies and markets.
And the reality is, most of this analysis falls on deaf ears. In good times, the majority of investors just don't care about analysis so long as they're making money.
But there is a time when you need to pay attention to what analysts are saying. In fact, reports show that when analysts are mos... ››› more
Investing in stocks that pay large, growing dividends has become very popular. It's a sensible strategy, made all the more attractive by the slide in interest rates, which has made it ever harder to find a reliable investment income. While it's impossible to invest in stocks without risking your capital, dividends - once paid - at least represent a return that the dividend payer can't take back. S... ››› more
When it comes to trading, even the world's best traders are happy when they call the market right just 60% of the time.
After all, with good money management, that weighting of more winning trades than losers is enough to make you a fortune.
So you can imagine how excited traders get when they have an opportunity to call the market right 80% of the time.
And today, I want to tell you how ... ››› more
It all started as a little whisper I heard from a fellow colleague...
He told me that a company he was looking at is likely to have a major change in ownership.
And, with this change in ownership we could see the share price soar by 43% in a very short time.
While whispers like this don't usually catch my fancy I do check up on them. Just to make sure whether there couldn't perhaps be som... ››› more
When you buy shares, there are times when you might ask yourself what's wrong with one of the company's you're invested in. This usually happens after a general market sell-off, when nearly every share is down. Maybe you sold your shares in a panic, after hearing something that troubled you on television, or after you see a one-day slide in the price. Let's take a closer look at what you should do... ››› more
Investing in shares is a difficult task.
With so many things out there it's hard to know what to look at to decide if a share is a good investment.
Take a stroll through any trading room and you’ll hear strange things like “Fibonacci retracements” or a “pullback with a double dip means the share price will go this way”.
There are literally thousands of numbers, ratios, charts and... ››› more
This tool once cost over R500, 000 to buy but today it's FREE and ready for you!
I recall my debut into the stock market in August 2003. Every day I would buy the Star newspaper. I'd scour the Business section for the share prices.
You see, back then although the World Wide Web was an amazing innovation we only had dial-up-connections. It was slow, noisy and just not suitable for trading.
... ››› more
Last week, the media reported that the rand was ‘softer' on the back of mining labour tension. This week, they're reporting that wage demands have sent the rand tumbling to a new four-year low, despite the fact that the strikes at Amplats and Lonmin have been called off… Here's why investors are still being cautious of investing in the mining industry.
There were further strike fears... ››› more
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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.
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