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Ignore the prophets of doom - Make sensible investment decisions with one to buy and one to sell

by , 07 November 2017
Ignore the prophets of doom - Make sensible investment decisions with one to buy and one to sell
It's important to not panic when it comes to making investment decisions. You need to weigh up your options and plan accordingly. Nenegate caused a stampede for the exit that saw many investors concerned as they watched the Rand recover.

There are a few products that you can invest offshore through that will provide you with capital protection in hard currency. This would be appropriate for investors seeking offshore investments with lower risk associated with it.

We have assisted many clients to invest offshore when the Rand was stronger, and continue to tell clients to review their offshore allocation and invest an appropriate amount offshore. For more information on Prodigy's Global Portfolio, please contact us.

Last week’s movers and shakers…
  • Best Performers: IPL 9%, ACP 8.6%, SGL 8.1%, HUL 7.8% and IMP 7.1%
  • Worst Performers: TSX -14.2%, ADI -10.4%, SAP -6%, TOR -4.8% and GFI -4.2%

One to Buy
Sygnia – A small cap with a big future!
Sygnia has been on the acquisition trail, with its most recent acquisition being the DBX range of ETFs. Its most recent trading statement signaled earnings could increase as much as 26%. The shares have been on the back foot for most of this year, retreating from R18 after the excitement of listing in 2015.
Now at R11.00, Sygnia’s low cost model and powerful administration and marketing engine are delivering strong monthly inflows.
The old adage rings true right now, don’t invest in the funds, invest in the fund manager!
On a PE of around 15 and forward dividend yield over 4%, it’s time to get in.
Buy Sygnia below R11.00
One to Sell
Imperial – Topping out at R210?
Last week’s results came in-line with expectations. The local business has been impacted by depressed economic activity and transport volumes. The UK and Australian businesses are running behind expectations. UK new car sales have declined for 6 months in a row.
There is marginal upside above the R200 mark and a pull back below R190 is a high probability after a 9% jump last week.
Speculative Short: Imperial at R207.50 for a move to R187.50. Place a stop loss at R212.50
Shorter Term Ideas
  • FSR: Increase stop loss from R50.75 to R52.25 to reduce risk. Hold
  • PSG: Leave stop loss at R255 to lock in 9.09% gain. 

Long Term Ideas
  • PPC: Buy dips below R7.00.
  • Santova:  Buy below R3.30.
  • Implats: Increase stop loss to R38.75 to lock in a 19.23% gain. Hold
  • Sibanye: Up 14.5%, increase stop loss to R18. Hold
  • Merafe: Rising nicely, up 14.19%. Hold
  • Steinhoff: Price consolidating. Buy in low R60’s.
  • Jubilee: Nicely in the money. Hold.
  • African Rainbow: Up over 30% since August. Hold.
  • AECI: Not responding close position at R105.00
  • MTN: Range bound, buy below R122.50.
  • Glencore: 29.5% open gain and rising - Hold
  • Wescoal: Long term buy. Add below R2.15
  • Naspers: up 50% and still pushing higher. Hold
  • Richemont: Running on improved earnings outlook, open gain over 30%, increase stop loss to R125.50 . Hold 

Have you used your 2017 Investment Allowance?
All your offshore investments allowances expire at the end of 2017. Prodigy can invest your funds securely offshore. Please contact my colleague Gavin McCarter without delay before you miss out. gavin@prodigyam.co.za

Ignore the prophets of doom - Make sensible investment decisions with one to buy and one to sell
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