The Steinhoff debacle hurt a lot of investors.
If you held Steinhoff shares before the crash - you'd be down around 97% on your money today.
And the chances of ever recovering all the losses are close to zero…
But what you should know is that situations like this can be avoided.
There are at least four clues to follow that are warnings signs of an impending disaster like that of ... ››› more
The most common argument you hear from investors who aren't interested in dividends is that the company should be able to find something better to do with its cash than give it back to shareholders.
They say the funds should be used to grow the business either by investing in the business itself or by acquiring new ones.
These are valid points but here's where they are wrong…
Recomm... ››› more
Today I'm going to explain why you don't ALWAYS need to follow…
Hot tips in the media
to know where share prices will go.
In fact, you only need to know one number to see if a company's shares will go up or down. And the best part, every investor can use it!
Although successful investors like Warren Buffett, Peter Lynch and John Temp... ››› more
When you're looking for a solid share to invest in, the company's Price Earnings Ratio (PE) is a great way to find a good investment.
You see, the PE ratio shows you the relationship between the price of a share and the profits the company is making.
But more importantly, the PE ratio reveals to you whether a share is cheap or expensive.
It could also tell you where the share's going (an... ››› more
Early this morning, Massmart released a trading statement covering the six months to the end of June.
The retailer warned of a large fall in profits for its coming results. Once the market opened, this led its shares to plunge in value.
Let's take a closer look at what's going on…
Massmart’s earnings could be as much as 30% lower
Massmart Holdings [JSE:MSM] revealed its earnings... ››› 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
The price earnings (PE) ratio is one of the most quoted financial ratios.
But what is the PE ratio? And what does it tell you?
Read on to find out…
What is the PE ratio?
The PE ratio is the share price of a company divided by its current earnings per share (EPS)…
PE ratio = share price / earnings per share
In other words, it shows you the value of a company as a multipl... ››› more
When companies release their results, one figure that investors are interested in is earnings.
Companies usually report earnings on a per share basis. It's easy to compare these figures to previously published ones.
But there are two types of earnings a company reports: Earnings and headline earnings.
So what does a company's earnings tell you? And what's the difference between earnings a... ››› more
Earlier today, Anglo American Platinum (Amplats) released a trading update for the full-year to the end of December.
The platinum producer warned of a sharp tumble in earnings over the period. This follows a five-month strike that hit its operations last year.
Let's take a closer look at what Amplats revealed…
Amplats says earnings are to fall between 40% and 55%
Amplats [JSE:AMS]... ››› more
When it comes to analysing a company, its share price is very useful. Using it along with the latest annual report and you can find out what the stock market is saying about a company's future prospects.
By doing this, you can reduce your risks of paying too much for a share and find possible undervalued ones.
Sometimes you'll come across stocks with share prices that imply they won't grow t... ››› more
Earlier today, Vodacom Group Ltd released its results for the six-months to the end of September.
The mobile phone provider showed that it's feeling the knock-on effects of cuts to mobile termination rates (MTRs). This led Vodacom to cut its earnings forecast.
Shares in the company fell sharply on the news.
Let's take a closer look at what the results revealed…
Vodacom blames a cu... ››› more
If you rely on dividend payments for income or reinvest your dividends to help grow your investment, you want to check if they're safe.
Whether a company's going to continue to pay dividends into the future is an important aspect of your investment strategy.
So how can you check the safety of your dividend payments?
One well-used method is checking a company's dividend cover.
Read on t... ››› more
Have your ever watched Bloomberg TV and you just didn't understand all the gibberish that they talked about?
Or, have you ever been at a braai when your friends started talking investing and you didn't have a clue what they were saying. Did you feel like the odd one out?
Well, what if I told you that thanks to four simple numbers, measuring the value of different shares is easier than you th... ››› more
Investing in penny stocks can prove to be a profitable endeavour. You can make money by investing in the right small company.
When you invest in a penny stock that's soaring, it can be hard to know when to bail out. You don't want to see your profits disappearing as the share price heads south.
That's what it's important to keep an eye on its PE (price earnings) ratio.
Let's take a closer... ››› more
At the moment, the news is full of a number of geopolitical events. These include the situations in Syria, Israel and Ukraine.
But should you worry about the impact on your portfolio?
Read on to find out…
As an investor, how should you react to geopolitical events?
The short answer is, you shouldn’t react to geopolitical events. And you can see why if you take a look at what’s... ››› more
On the face of it, investing in shares should be easy. You just need to find undervalued shares and wait for them to rise in price.
Numerous studies over the years have shown that following an investment strategy of buying shares for less than they're worth is beneficial. It's just a case of waiting and being patient.
Value investing should beat the market's performance over the long-term.
... ››› more
Earlier today, Impala Platinum released its results for the full-year to the end of June.
The platinum producer's results reflected the crippling effect on the lengthy strike that hit the majority of its operations.
Impala Platinum is now reviewing its operations to determine the best course of action going forward.
Let's take a closer look at what the results revealed…
Impala Pl... ››› more
Earlier today, Gold Fields released its results of the three months to the end of June. The company posted an impressive rise in earnings over the period.
The gold producer managed this in spite of a lower gold price and lower production.
Let's take a closer look at what Gold Fields revealed…
Gold Fields cost cutting efforts paid off
Gold Fields [JSE:GFI] posted “a 7% increase i... ››› more
Earlier today, Merafe released its results for the six-months to the end of June. The ferrochrome producer reported an impressive rise in earnings and production over the period.
Investors greeted the news well, with Merafe's share price rallying strongly on the news.
Let's take a closer look at what Merafe revealed…
Merafe boosts earnings 134%
Merafe’s headline earnings per sha... ››› more
When you put money into a savings account, you expect the bank to pay you a rate of interest in return for that.
When you invest in shares, there's also an expectation that your money will earn you a return. Otherwise it wouldn't make sense to risk you money investing.
Your cash would be better off in the bank.
So what sort of ‘interest rate' can you expect in return for investing in a... ››› more
Disclaimer Note that FSP Invest, a division of Fleet Street Publications (Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The advice in this website is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal situation, you should seek professional advice from a stockbroker or independent financial adviser authorised by the Financial Services Board.
We research our recommendations and articles thoroughly, but disclaim all liability for any inaccuracies or omissions found in this publication.
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 newsletter. However they have signed restraints to prevent the abuse of their position as contributors to this publication.