Zeder is a little investment holdings company on the JSE. For years it was a core shareholder in Pioneer Foods (acquired by PepsiCo). It also holds a number of other interesting agricultural businesses as well…
But the company's share price is down 62% in the past five years.
What's going on? And is there an opportunity to profit? -----------------------------------------------------------... ››› more
There are many economic signals that can accurately predict a recession.
A few weeks ago, I wrote about the “inverted yield curve”. It's a very strong predictor that economic growth will contract in the short-term.
Rapidly rising oil prices are another excellent indication that recession is hovering just over the horizon.
Historically speaking, high inflation combined with low unemp... ››› more
In our QA mailbox this past week...
Q. “Hi Timon, my share portfolio hasn't been doing lekker since the start of Covid and now with Russia at it with the Ukraine, I seriously need to consider diversifying my investments. I've been following you for about 4 and a half years and I'm feeling ready to join Red Hot Storm Trader. However, I have 13 questions
If you can answer them quite briefly.... ››› more
Right now the South African repo rate sits at a rock bottom 3.5% interest.
The interest I'm getting on cash in my brokerage account right now is a mere 2.18%.
Simply put - with interest rates this low you HAVE to look elsewhere for yield.
And it so happens that there are a handful of JSE listed penny stocks that are paying dividends up to double and even TRIPLE the current interest rat... ››› more
Small caps and penny stocks have soared in the past year.
The JSE's Small Cap Index is up 58.61% in the past 12 months alone!
A lot of investors are asking me about great small companies to buy and hold for great returns like these in the coming year, and beyond.
But it's important not to throw darts at a wall and pick a lottery ticket. To capitalize on the strength and upside of small... ››› more
Bitcoin hit another major milestone…
The $50k mark!
But Ark Invest - a global asset manager with $50 billion worth of assets under management - believes this is only the beginning of Bitcoin's meteoric rise.
In fact, they think Bitcoin has the potential to reach as much as $3 trillion by 2025 versus roughly $900 billion today.
Here's why…
__________________________________... ››› more
There's never a dull moment in the crypto market.
And last week, it got a whole lot more interesting…
By now I'm sure you've heard, Tesla - one of the world's largest companies - has set its sights on bitcoin.
In their annual report, Tesla announced…
‘In January 2021, we updated our investment policy to provide us with more flexibility to further diversify and maximize ... ››› more
For the past year I've been telling investors small cap companies are selling for a fraction of their true worth - despite the pandemic and SA's economic woes.
And with the small cap index jumping 17% in the past three months, it certainly looks like the momentum is building.
In fact, in the past week I've noticed an institutional research report being released on a small company I've been... ››› more
Small cap stocks have had a tough time in recent years. While the underlying businesses in many cases did really well - their share prices didn't.
Between March 2016 and March 2020 the Small Cap Index was down 44%.
In the last 6 months though, the Small Cap Index is up 25%, erasing a great portion of its past losses.
And thus far 2021 looks like a scorcher for small companies.
In t... ››› more
Have you ever wanted to kick yourself because you sold a stock that just kept going up and up?
It happens to the best of us…
Earlier this year, at Red Hot Penny Shares it happened with DRD Gold.
We bought the stock at 265c in June 2019 and sold it at 1577c in May 2020.
Adding in the dividends we received I was very happy with a 519.62% gain.
A mere 2 months later the stock hi... ››› more
Q. "Timon with Joe Biden becoming the next president, what are your thoughts on energy and oil prices?"
A. For a short answer, I have never been more bullish (positive) with oil and the energy sectors.
You see, with the Donald Trump administration there were ongoing trade wars and tension with China over the last four years.
And for this reason, we ke... ››› more
Square - A $73 billion e-Commerce giant made a big bet on Bitcoin in October.
This is not the first time the company's backed the cryptocurrency.
In 2018, it expanded its mobile payment service Cash App to support Bitcoin trading, even for users without a bank account.
And in 2019 it launched Square Crypto, which awards grants to Bitcoin developers and designers.
Square's bullishne... ››› more
The rand has been extremely volatile this year, ranging between R14/USD to over R19/USD. Recently, the currency seems to have found a range between R16.40/USD and R17.20/USD. This stability may be short-lived however as the rest of the year will likely prove turbulent.
Overseas, we have the US election looming in early November. It's set to be one of the most contentious in recent memory. Thou... ››› more
Q. “Hi Timon, it's been a tough two months trading, with this sideways market.
Right now, I'm worried because I'm down 15% of my portfolio.
It's entirely my fault as I let my trades run down without a stop loss.
Do you possibly have a calculation that I can use to see how much I need to recover to get my portfolio back to what it was?”
A. Hi Andrew, yes it is most defin... ››› more
If you look closely at any US Dollar note, you'll see In God We Trust, this has been America's motto since 1956. It replaced its unification slogan of E Pluribus, Unum from 1776.
But in America, there's a second motto and that's In Gold We Trust. Gold (and precious metal) coins have been selling at a significant premium since the March lows.
Gold has been on a tear since the coronavirus low ... ››› more
Have you heard of SaaS?
Well, SaaS forms part of the growing Cloud Computing industry. And over the past two decades, it's grown exponentially!
Just consider in the 2000's, just 12% of businesses were making use of it.
But thanks to the growth of the internet, the SaaS market has exploded with more than 73% of all businesses using it today!
And it's thanks to this rapid adoption, t... ››› more
In the 1980s, one of the greatest mutual fund managers of all time, Peter Lynch, published a number one best seller - One Up on Wall Street.
This book explains the advantages that average investors have over professionals and how they can use these advantages to achieve financial success.
Over the years, One Up on Wall Street has become one of the most famous investment guides with more th... ››› more
Q. “Hi Timon, I'm still deciding whether I should add crypto-currencies in my portfolio. Can you maybe list a couple reasons why it's important?”
A. I think with the ever changing and challenging economy, more and more people are adapting to new ways to make, invest and preserve money.
Here are my 10 reasons to add crypto-currencies in a portfolio:
• CHEAPER – It is a chea... ››› more
Q. “In a recent article by Francois Joubert, he gave us a tutorial on how to calculate the dividend yield and the dividend cover ratio. Unfortunately, the only place I have to see the shares data is on Google. My question is, can I calculate the Dividend Per Share with the information Google provides or do I need to download a new software?”
A. Yes you can calculate the Dividend Pe... ››› more
Back in 2018, India outlawed “any service in relation to virtual currencies”. And if you were dabbling in cryptos, you could face prison time.
The original ban was imposed by the Reserve Bank of India (RBI), which clearly feared crypto would undermine its authority.
Fast-forward to March 2020, and India's Supreme Court overruled the RBI, calling the ban “unconstitutional”.
Sinc... ››› more
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