When investing I look for stocks that have disconnected from their true value. If a share price is much lower than what it is worth - I buy it.
But every so often I come across a stock that is the opposite. Its share price is so much higher than what it is really worth that I simply cannot stay quiet. I need to warn investors about it.
Today there's two stocks like this I want to share wit... ››› more
Like the tourism and hospitality sectors, construction has been hard hit by the Covid-19 pandemic.
As a result, the construction sector saw a 30% collapse in the second quarter of 2020.
But it looks like the construction sector has started to see a recovery at last. In 2020, the Afrimat Construction Index dropped to below 70 - from a 2019 average of just above 120. Indicating a huge drop i... ››› more
Mark Twain wasn't wrong when he said:
“History doesn't repeat itself, but it often rhymes.”
The more things change, the more they stay the same - this is true when it comes to the fear, greed and herd mentality in the markets... If you've been investing long enough you will see the same patterns on repeat.
Just think back to the 2007/2008 financial crisis…
I remember buying ... ››› more
The JSE seems to be filling up with bargains, as stocks have double digit declines in hours and days. Investors just need to look at what happened with Tongaat and Aspen in the past few days. And these aren't the only ones in the past couple months, Capitec, EOH, Resilient and its related companies are still fresh memories.
Very often large cap stocks with derivatives on them can react a lot m... ››› more
South Africa has just officially entered a recession.
GDP figures for the first quarter of 2017 show a GDP contraction of 0.7% quarter on quarter, and it follows the fourth quarter of 2016 which saw a 0.3% contraction…
This is the first time since 2008/2009 that South Africa's entered a recession, which is defined as two quarters of negative GDP growth.
So if our economy isn't growin... ››› more
Since the beginning of 2017, we've told you what sectors could be in trouble because of the uncertainty in South Africa.
For example, the combination of high interest rates and consumer confidence has seen retail companies struggle to grow profits throughout 2016.
Struggling retailers mean some shops have closed doors, and as such, property companies with retail tenants could risk vacancie... ››› more
It's been a tough few years for the construction industry but now that Donald Trump is president of the United States things are starting to look up.
The Trump presidency is turning out to be very bullish for the equity markets and especially the construction sector which will be helped by the new fiscal policy stance.
Today's FTSE 100 stock has been touted as a potential beneficiary from an... ››› more
Raubex Group is a company focusing on heavy engineering, with a strong focus on infrastructure. The company has a listing on the Johannesburg Stock Exchange…
Full name: Raubex Group Limited
Short name: Raubex
Sector: Construction & materials – construction & materials
Five top facts about Raubex Group
Raubex Group employs aro... ››› more
When Afrimat listed in 2006, it focused only on building materials. Had it remained this way, it would have been in big trouble.
However, early diversification let it supply contractors working on large infrastructure projects. And during the financial crisis and the subsequent recession, it chose to diversify further, with less reliance on government infrastructure spending.
The company did... ››› more
To find the best shares to buy, you need to do your research. You want to give your cash the best chance of future growth investing in shares.
So how can you uncover a good investment?
One common way of valuing a company is using the price earnings (PE) ratio. But the PE ratio has its flaws.
Read on to find out the downfalls of the PE ratio and what you should use instead…
What ... ››› more
Making money from investing in shares comes down to the price you pay and the price you sell.
To boost your chances of making a profit, you want to buy into shares when they're showing good value.
So how can you do this?
The price earnings (PE) ratio is one of the most widely used financial ratios for the job, but there's another one you can use to get a bigger picture…
What is t... ››› more
Earlier today, Stats SA released its quarterly labour force survey covering the third quarter of the year.
The report showed a poor gain in employment numbers from July to September.
Let's take a closer look at what the report revealed…
Unemployment is now at 25.4%
The rate of unemployment in South Africa now stands “at 25.4% of the labour force,” reports Fin24. That’s a mar... ››› more
If you're new to investing and looking for clues on how to build a winning portfolio, where can you start? By including a few key approaches in your investing, you can improve your chances of success. With investing, the same thing doesn't work for everyone. So it's important that you hone in on what works well for you over time. Let's take a closer look at what you should include…
Investment... ››› more
Deciding on what shares to buy isn't an easy task. You need to consider a whole host of factors when adding stocks to your investment portfolio. When investing in shares, you should look at the sectors of the different companies. Different sectors behave in different ways. And over time this can have a bearing on the performance of your portfolio. Let's have a look at the different ways sectors be... ››› more
Yesterday it emerged that the man at the helm of the Competitions Commission, Shan Ramburuth, had whittled away thousands of rands visiting adult sites. This led Mr Ramburuth to tender his resignation with immediate effect. The Minister for Economic Development, Ebrahim Patel, replaced Mr Ramburuth with Thembinkosi Bonakele as acting competition commissioner. Let's take a closer look at what went ... ››› more
If you're an investor by nature who likes to take a little bit of risk on the stock market, then it's your lucky day! The JSE has a baby sister called the Alt-X market.
It consists of plenty of the small cap shares which each share has a market cap of under R1.5 billion.
There are shares within this index which are set to become the next blue chip companies of the future.
Since 2007, the ... ››› more
Retail shares have crashed this year, the unsecured lending bubble has popped and mining shares are going nowhere slowly as workers keep striking…
With the market looking like this, what should you invest in?
Well, what about the one sector making a comeback?
Back in 2009 one of the largest construction companies, Murray and Robberts, was worth R50 billion. Today the WHOLE construction ... ››› more
Earlier today, it emerged that one of the unions involved in the construction sector has accepted a wage deal. The Building Construction and Allied Workers' Union (BCAWU) have agreed to a wage hike of between 8% and 10%. Let's take a closer look at what's happening with the strike in the construction sector…
Earlier today, the SA Federation of Civil Engineering Contractors (SAFCEC) said that o... ››› more
Earlier today, the Minister for Mining, Susan Shabangu warned that a lengthy strike in the mining sector would be bad for the economy. Strike action is set to begin tonight after wage talks failed. Let's have a closer look at the impact of a lengthy strike in the gold mining sector…
Susan Shabangu, Minister of Mines, warned earlier today that a “protracted strike in the gold industry” will... ››› more
Yesterday, Murray & Roberts released a trading update. And the market liked what it saw. The share price rose nearly 6% on the news. Let's take a closer look at what the update revealed…
Construction firm, Murray & Roberts’ share price rose 5.9% yesterday, reports BDLive. This was after the company said it expects its results to show “a return to profit”. The company’s results are due ... ››› 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.
Editors or contributors may have an interest in investments commented on in this website.