On 8 September South Africa's GDP figures for the second quarter of 2020 was released.
Our economy shrank by 51% annualised in the three months between April and June 2020.
This has put us into the longest recession in the past 28 years.
Sectors like mining fell 73.1%, manufacturing fell 74.9% and construction shrank by 76.6%.
This is bad.
But even though it was just released, i... ››› more
You may not know this but two-thirds or 60% of the world's supply of cocoa beans come from West Africa each year.
This includes the Ivory Coast and Ghana (2nd biggest cocoa producer).
Just to put it into perspective, Ghana's cocoa sector employs over 800,000 rural families. It also produces around R33.58 billion in foreign exchange.
This year we've seen a major slump in cocoa prices.
... ››› more
Q. “Is there a list of things I need to ensure my success from your Red Hot Storm Trader service Timon?”
A. I’m sure you have everything you need to benefit from the service.
But to make extra sure, here are my five checkboxes to optimise your success with Red Hot Storm Trader.
1. A computer or a cell phone with a good internet connection
... ››› more
Early on in the COVID-19 pandemic there was a ‘nerdy' accounting joke doing the rounds saying that soon we'd see EBITDAC - Earnings before interest, tax, depreciation, amortisation and corona.
While there's no ‘official' accounting term like that - companies results do show the effects, the pandemic has had on them. And many are opting to call it ‘once-off expenses.
Suddenly the ner... ››› more
This is the MOST exciting technology I've ever come across.
I'm talking about Blockchain.
It's one that is truly going to rule the world when it comes to business, making transactions and with trading the financial markets.
If you missed Wednesday's brief explanation on what Blockchain is and how it works - it's actually ok!
Just don't miss this one.
Today I'm going to expand on... ››› more
There are hundreds, if not thousands of economic indicators investors like us can look at to gauge how the economy is doing. Employment figures, GDP Growth, CPI, the Trade Balance, these are just a couple of the well-known ones. There are more obscure ones, like the Buttered Popcorn index, the R-word index or the Coupon Redemption index.
But you don't need to know all of these. In fact, there'... ››› more
On 1 April 2020, I sent out an article:
This precious metal just proved its safe-haven status during the
At the time, gold was trading at $1,450. I predicted (based on a Megaphone Formation) that the price was heading to $1,960.
This was due to the following factors at the time…
• The Fed printed over $2 trillion stimulus package for households and business... ››› more
The rand is once again in hot water.
In August, we saw the currency drop from R15.00 down to R17.78 for the first time since 21 May 2020.
And this is due to one main factor.
We hit half a million cases of Coronavirus in SA, taking us to the top five infected countries in the world.
It's clear the COVID-19 pandemic still has the power to cause a see-saw in market sentiment.
And... ››› more
On 31 August 2020 Apple's share price will drop around 75% from what it was.
That means its share price will go from the current $437.50 to around $109 a share.
I don't need a crystal ball to predict this.
You see, Apple announced it is doing a 4-to-1 stock split.
And its not the only company doing this. Tesla announced a 5-to-1 stock split that'll happen on August 21.
So, what do... ››› more
MTN will deliver half year financial results to the market on Thursday 6 August. This is another company that has been overlooked by the market, MTN has already announced that the Headline earnings will increase by about 120%.
The company's earnings are coming off a low base, but these results should show that it has successfully operating during the lockdown. It should benefit from the work-f... ››› 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
In Wednesday's Q&A, I received the following question.
“Could you please provide a few crypto currency companies that pay dividends?”
When I gave an answer, this made me think…
Could crypto investing be the future of passive income?
I realised that with the number of crypto currencies that are distributing dividends now days - I believe YES!
And in this article, I am goin... ››› more
The economy is opening up again following lockdown.
Restaurants and hotels are opening their doors again, so it might sound like a good idea to take a bet on these companies share prices recovering quickly now…
But before you do that, just give me a moment to explain why these sectors, and specifically two stocks in these sectors aren't headed for a recovery yet.
___________________... ››› 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
Some years ago I called out the Sharemax investment scheme.
And I got flack from advisors and investors invested in the company - collecting fat dividends.
But Sharemax crashed and burnt. And investors lost out big time.
In early March 2016 I warned investors that MMM Global would bankrupt them.
I received hate mail, MMM Global investors laughed at me. You see, they ... ››› more
It's very hard to make sense of markets right now.
On the one hand, it's crystal clear the economy is in a mess. Unemployment is even higher than the worst of the Global Financial Crisis of 2008. The damage done by lockdowns cannot be easily undone.
On the other hand, governments have pumped unprecedented amounts of money into the system and the market seems to be on an unstoppable rise. J... ››› more
The word “investing” might conjure up men in suits, big deals around boardroom tables and the exchange of millions of rands.
But today I'm here to tell you that investing is not just for the rich, it's not just for super smart financial gurus. And you don't have to be the Wolf of Wall Street to start investing.
Even if you have only a few rands to spare, you can start investing today.... ››› more
Last week I received a letter from a Red Hot Penny Shares member asking about dividends from companies in our portfolio.
‘X' asked for the companies that pay the biggest dividends.
But the answer to that question is a bit more intricate.
You see, a company selling at R1 paying a 5c dividend could be more attractive than a R10 share paying a 30c dividend. But the 30c dividend is techn... ››› more
Just how a money-market account pays you interest…
And just how certain shares pay you dividends…
Cryptos can generate investors a passive income too!
It's not known as a “crypto dividend” or “crypto interest”…
Prediction: These two digital currencies will lead the crypto resurgence
__... ››› more
“I am trying to wrap my mind around the spot and the futures market. Could you please clarify between the two and what the differences are between them?”
A. There are two different types of markets when it comes to trading – the spot and futures market.
The spot market or cash market is a public financial market in which the actual financial instrument is... ››› more
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