The Rand fell over 3% from its open to close last week. This is on the back of Ace Magashule's surprise (and incorrect) inclusion of changing the Reserve Bank's mandate and possible quantitative easing. When you add the bad GDP growth figures, you can see why people panicked and sold the Rand for any price they could get. Typically, this herd mentality happens at exactly the incorrect time creatin... ››› more
Telkom released annual results last week and its share price soared after a brief pull back. It has rallied over 50% year to date. Investors were expecting information on the potential property portfolio unlock. Nothing concrete has been delivered.
The CEO Sipho Maseko highlighted “Our strategy to separate our property and mast and tower portfolio to increase management focus and unloc... ››› more
Investec have introduced FTSE100 Auto Call, a five-year structured product providing an 18% return per annum if the index is positive. The product can mature (Auto Call) if the index is positive on the third, fourth and fifth anniversaries provide the index is positive. You could receive 54% after year 3, or 72% or 90%, after year 4 or 5 respectively. That's even if the index is up just 1% over an... ››› more
The JSE heavy weight Naspers, has pulled backed after it rallied over 50% from its 2018 low. The pull back is due to a global market sell-off sparked by President Trump escalating the Trade War and ‘kicking out' Huawei.
Below is a chart of Naspers, I've included the Fibonacci retracement levels, as traders will be eyeing these levels to build positions. Yesterday's close was just below the 3... ››› more
It's no secret that the marijuana industry is one of the hottest and fastest growing sectors right now.
In 2018, the legal marijuana industry grew to $10.4 billion in the US.
Despite the massive growth, a big challenges exists…
Marijuana is still illegal on a federal level. However, this isn't stopping US states from legalising medical and recreational marijuana.
Right now, 10 ... ››› more
During the first quarter of 2019, my Red Hot Storm Traders banked two winning gold trades: A 47.77% gain in January and a 41.06% gain in February.
This was all because gold was above a critical level, which confirmed it was in a strong uptrend.
What's exciting is that, now we have an even bigger opportunity to continue profiting from the gold upside in the second quarter of 2019…
... ››› more
If this support level holds, we could see our market run to record highs. And the elections could be the catalyst for a strong bounce and rally to the previous highs.
The old stock market adage of “sell in May and go away”, seems to be ringing true for the JSE as we approach May. The JSE (Top 40 future) is pulling back, testing a crucial support level.
This back-up plan will allow Americ... ››› more
Last month in the South African Investor, I wrote about the world's most-feared recession indicator, the yield curve.
More specifically, if the yield curve is signalling an upcoming recession.
Now remember, the yield curve plots the interest rates of the 10-year US Treasury note (long-term rate) and the 3-month US Treasury bill (short term rate).
When short-term i... ››› more
On Wednesday 10 April 2019 EOH shares traded at a low point of 946c.
By 10:00 Am on Tuesday 16 April 2019 the share traded at 1625c, up 71.77% in less than 7 days!
That must be one of the biggest runs a stock has done on the JSE this year!
But here's the thing - since 30 September 2016 EOH shares are still down 90% from their level of R176!
So, what does this mean for investors lik... ››› more
What an incredible fall EOH has experience in 2019. Its shares have lost over 50% in value. Today, EOH is trading at a 50% discount to its NAV even after jumping 14% yesterday. Traders who are short and investors who dumped the stock to sit on the sidelines, can't wait and risk a massive rally as its results are released this morning.
Despite being more than 90% lower from its high of R1... ››› more
On 28 March 2019 Argent Industrial announced it bought R11.5 million of its own shares back.
Rolfes Technology Holdings directors have also been on the acquisition road.
On 2 April Chris Seabrooke bought R2.3 million worth of shares in the company, and then on 9 April CEO, Richard Buttle, bought R572,764 shares back in the company.
Then there's Santova directors that have bought R13.4 mil... ››› more
In September 2014, Anchor Capital's shares closed 75% higher from the day it listed at a price of R2. The next day saw it close another 28.85% up. Investors dubbed it the “new kid on the block” as asset managers pushed it higher week after week.
After six months, investors who secured the stock at R2, gained 300%. The share price defied gravity to hit a high of R18.99 prior to Nene-gate; ... ››› more
SuperGroup's share price has returned to where it was at the beginning of 2015, and has been stuck in a range between R45 and R33.
It has bottomed out around R33, half year results put its NAV at just below R29 growing at 16% (CAGR) over the past four years.
Earnings have increased by 9% (CAGR) and expectation is for that to continue. It's on a forward PE of just 8.5 while its five-year a... ››› more
Wescoal's share price has pulled back all the way to levels last seen in 2016. The company recently announced a change of the guard as it appointed Reginald Demana, a Nedbank Capital resources banker, from 1 April. This follows the sudden departure of Waheed Sulaiman in January.
WSL share price is also depressed as small and mid-cap stocks remain out of favour, mostly due to these companies be... ››› more
EOH has been dogged by many allegations and it's share price is down from its 2015 high of R180 to R18.11 at yesterday's close.
This has resulted in EOH's share price dropping to around its net tangible asset value of R17.07 (FY2018), the NTAV should drop to round R15.00 per share in its interims due out later this month.
Investors looking for a speculative investment that cou... ››› more
In August 2018 the gold price traded at $1176. Since then it's shot up in a near straight line, hitting $1307 on Tuesday 29 January…
For South African's the current gold price is even more significant…
You see, in rand terms the gold price is very close to its one year high…
In February 2018 the gold price was R494,365 per kilogram. Today it sits at R572,615 per kilogram.
... ››› more
Dischem (DCP:JSE) has pulled back considerably in the past two weeks to its May 2018 low. This isn't on any company specific news, but a broader sell off in the related retail stocks following lacklustre results. Clicks trading update for the 20 weeks to 13 Jan 2019 weren't fireworks, but highlights consistency and a demanding valuation.
Dischem’s results for FY 2019 due... ››› more
After a turbulent 2018, emerging markets are finding favour amongst investors looking for value with strong upside potential.
This is on the back of a few major themes that should play out:
1. A dovish FED that is expected to only hike rates once in 2019,
2. EU monetary policy that will remain accommodative,
3. Chinese stimulus to avoid a “hard landing”,
4. Glo... ››› more
President Trump sent global markets roaring higher after he and China's President Jinping agreed to de-escalate the tit-for-tat tariffs. It's only for the next three months, but signals Trump is realising the potential damage he is causing to the US economy.
This is good news, when you consider Fed Reserve Chair... ››› more
Globally, shares are deep in correction territory, offering patient investors opportunities to deliver returns in a tough market.
Sasol has fallen almost 30% from its September high to below R420 on a weaker oil price and weak global sentiment. The R400 support level should be the bottom ahead of a move higher.
Last week, Sasol released a positive trading update for the interim period to 3... ››› more
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