Industrials down 3%
Industrials took the brunt of weaker markets last week as concerns regarding the economic outlook post US elections weighed on sentiment. Woolies was down 6,3% and several other industrial shares fell by approximately 4%.
Naspers down 7,9%
Rand strength and weakness in social media stocks put pressure on Naspers. Facebook was down 8,6% while Groupon fell 19%. Some anal... ››› more
23 years ago, two brothers, David and Tom Gardner, founded and built one of the world's greatest investment communities - The Motley Fool.
Reaching millions of people every month through a website, books and the newspaper, they give independent financial and investment ideas to help ordinary investors make a lot of money.
But these brothers are more than this.
They've published best-selli... ››› more
When I say trader what do you think about?
How about a stressed out guy with over four screens, screaming every time he gets in and out of a trade?
How about a guy who's pulling his hair out at the thought that he's losing his wealth very quickly?
How about a guy that has tons of charts, calculators and pieces of paper on his desk to do complicated maths sums with his trades?
This couldn'... ››› more
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
There are many widely available tools, tricks and techniques that will help you spot good businesses that are likely to increase in value.
But do you know how to spot companies that are going bust?
Well if there's one person who does, it's Scott Fearon.
An extremely successful money manager, Scott Fearon has shorted more than 200 companies that eventually ended up at zero. And spotting th... ››› more
2016 has been a year many will quickly forget, but for the shock results of the Brexit vote and the US elections; it was a year where many cans were kicked down the road.
Global growth remained benign and potential silver-linings have yet to gain material traction because of lingering uncertainties such as the future US foreign policy, the tensions in South East Asia, lingering debt problems i... ››› more
Happy new year everyone, I hope you all had a good break and did tons of holiday shopping for your friends and family!
Why? Because yesterday marked the beginning of the retail reporting season. And, in the next couple of weeks we're going to see just how much South African's spent at the shops in December.
There is no doubt the market is expecting a super tough Xmas period for the beleag... ››› more
AVI is a South African based company, listed on the JSE in the Food Products sector, and is centered on the FMCG market.
AVI's extensive brand portfolio includes more than 50 brands. The Group comprises of trading subsidiaries that manufacture, process, market & distribute branded consumer products.
AVI brands span across a range of categories including: hot beverages, sweet and savory bis... ››› more
Over the past 10 years, the South African listed property sector has easily outperformed its peers.
Investors who've jumped on this rally early, would have made a fortune investing in JSE property companies.
But the smooth-sailing returns delivered by the commercial property market are coming to an end.
You see, listed property returns have halved for the last three years - 25.1% in 2... ››› more
I call it platinum fatigue…
Eight years ago, platinum hit $2,200/ounce.
It subsequently crashed to $800, recovered to $1,500 and dropped back to $800 again in 2016.
Everyone's basically given up on platinum, there's just been too much drama for the metal…
Did you even notice that platinum is up $100 since December 2017?
On 26 December 2016, Platinum was at $894 per oun... ››› more
The JSE Top 40 closed the week down 1,5%.
Higher commodity prices; Gold, Silver and Brent Oil were up more than 2%, while Platinum managed 1,6%. These were not enough to save the Resources Index (down 3%) from a stronger Rand. Industrials and Financials were also softer.
Anglogold up 9,3% and Harmony 9,5% responding to a firmer Gold Price (up 2,5%).
PSG rallied 6%, see comment below. ... ››› more
Consolidated Infrastructure Limited (JSE:CIL) is one of those buy and hold for a decade shares.
The company had a mere R8.32 in net assets in 2011. Today they stand at R21.62 - nearly 200% growth.
CIL also grew revenues from R1.4 billion in 2011, to R4.5 billion in 2016. That's a whopping 221% revenue growth.
And it's profit growth has been just as remarkable as it rode the wave of exp... ››› more
Where is, the Rand going?
The biggest surprise last week came from the Rand which strengthened another 2,3% against the US Dollar and 3% to the Pound. This put Rand hedge stocks under pressure and the Resources Index fell 2,7%. The JSE Top 40 index was down 1,5%.
The Dow Jones Industrial Average rose 1,8% and the S&P500 1,5%, touching new highs. European markets were firmer but m... ››› more
“The JSE is too expensive, rather buy these offshore stocks”, if read this headline, and variations of it many times in the past year.
Yet, my Red Hot Penny Shares readers would've banked an average gain on shares we sold of 22.21% in 2016.
Whilst there are still calls to drop the JSE and put your money elsewhere I am optimistic.
I believe 2017 can be just as good, or better, than ... ››› more
Commodities take a step lower
Brent oil led the commodity basket lower last week, losing 8,1%; Platinum and Gold were down 5,7% and 2,4% respectively.
Although the Rand softened, the pressure was too much for the JSE All Share Index which fell 0,8%. Resources fell 5,5%, but the rest of the sectors held up well.
International indices were slightly softer across most time zone... ››› more
“Triple Witching” refers to the combined expiration of the Index futures, Index options and stock options. In the UK and US this happens on Friday's, but in SA it happens a day earlier on Thursday. The event typically creates increased market activity and in some cases volatility.
Global markets were relatively subdued for last week's expiry, the US, UK and European majors were firmer by b... ››› more
The news yesterday that several ministers have been recalled to SA has created some consternation; the Rand jolted back 3%. There is speculation of a cabinet reshuffle and/or further legal developments relating to the impasse between Treasury, Banks, and the Gupta's…...
The new Mining Charter is expected to be released this week. And the market is bracing itself for new challenges. This just... ››› more
Admittedly, I expected more movement in the Rand once the cabinet reshuffle was announced. We have a saying that “the Market always knows” which seems to apply in this case.
When Mr. Nene was removed, the Rand fell 8,5% within the first few days and then extended those losses by another 10% a few weeks later. By comparison the Rand has loss only 7% so far, perhaps the Market knew that SA I... ››› more
Today I'm going to explain why you don't ALWAYS need to follow…
Hot tips in the media
to know where share prices will go.
In fact, you only need to know one number to see if a company's shares will go up or down. And the best part, every investor can use it!
Although successful investors like Warren Buffett, Peter Lynch and John Temp... ››› more
A week of heightened protests has ended and the ANC Cadre are holding the fort, for now. Their confidence masks the growing dissension from all sides, including members of its own party, eventually pressure will come to bear.
Fitch followed S&P in downgrading SA, but again the reaction was relatively muted. Clearly the market had been preparing for this eventuality. Of more concern is that som... ››› more
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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.