A troubled shareholder was running next to me on the treadmill at the gym yesterday.
He looked around 55 years of age and he was gunning it (running fast).
While I was enjoying my brisk walk, I could see something was troubling him.
At first I said "slow down speed racer you're making me look like a lazy trainer." As he caught his breath, he told me how he invested in Asp... ››› more
When you're looking for stocks to invest in you'll typically either use fundamental investing strategies (looking at financial and other real world data) or technical analysis (looking at charts and price movement to predict future moves).
At the end of the day - financial performance drives stocks in the long-run. And as an investor in businesses I gravitate towards what these businesses and ... ››› more
Buying shares at a significant discount provides some downside protection.
Knowing you bought R1 of assets for 79 cents gives you comfort, and one investment holding company is trading at exactly that.
While investment holding companies typical trade at a discount to their some of the parts value, when these companies sell or distribute assets, the benefit is received at full market value.
... ››› more
The rand lost 4% of its value in mere days last week.
At the same time, between 13 and 15 August the JSE lost 4% of its value.
As uncertainty at home and abroad causes this kind of volatility, there's a simple kind of investment that warrants a place in portfolios.
I'm talking about dividend paying stocks. The appeal is simple, dividend payers can provide investors with tangible returns (... ››› more
Last week was a busy week with the market sailing through a gauntlet of central bank meetings, escalating trade tensions and a historic meeting between the US and North Korea.
Surprisingly the JSE held up relatively well buoyed by a weaker Rand. We've also seen volatility (measured by the VIX) drop back towards 12, a level that signals the market might not be pricing in the risk of a “Trump ... ››› 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
More bad news for the Lonmin share price In 2012 Lonmin asked shareholders for R7.12 billion in capital to keep the doors open. At that stage the company was worth R8 billion. But investing in Lonmin was a bad idea.
By 2015 the company burnt through all of that money. Its value crashed, with the company being worth a mere R1.2 billion in November 2015.
And then, as the creditors came knock... ››› more
Last week's sentiment remained positive and markets continued their rally. President Trump's first days in office are being closely monitored and provide plenty for traders to digest.
The JSE Top 40 closed the week up 0,8%, but retreated slightly on Friday along with generally softer developed markets; for the year to date the JSE is up 7,7%.
Kumba rallied 27% after it provided a product... ››› more
Last week, we discussed how through one simple switch we managed to save our clients a cumulative 71% in 2016.
But this year we're going to try and do it again. So let's compare the investment cases of The Foschini Group (TFG) and Woolworths (WHL).
These companies share similarities in that they're both involved in apparel retailing in South Africa but have very different strategies when i... ››› more
On 29 September 2016 Wescoal announced it would issue 124,995,373 new shares to a BEE investor, for an amount of R211,410,862.
At the time Wescoal's entire market cap was R440 million. So this is a big deal - it is nearly 50% of Wescoal's total share capital being added.
Usually a deal that dilutes earnings as much as this one will, is a bad thing.
Shareholders don't like it.
But since... ››› more
Hundreds of thousands of people around the world have gone crazy over the Pokémon Go revolution. Smart phone addicted nuts chasing around imaginary creatures have caused quite a stir in the international markets.
Players across the world have received warnings from authorities for trespassing, illegally crossing borders, heat stroke and even online scams.
It wasn't only gamers blinded by ... ››› more
Last year was a rough year for markets. The All Share Index only managed to eke out a measly 5.22%, almost a third of its long-term average return. It was also a year in which we witnessed the spectacular fall from grace of two the JSE's former market “darlings”.
MTN which delivered 136.23% between 2010 and 2015, ended the year down -36%, after getting smashed on the news of its Nigerian ... ››› more
IT seems that Africa's largest cellular network provider, MTN is in for a few more changes to its executive structure.
MTN released a statement to its shareholders informing them that Brett Goschen, the company's Chief Financial Officer is leaving the company on 30 September 2016. Goschen will also be stepping down for MTN Group's board of directors.
In the meantime, CEO of MTN Rwanda, Gunt... ››› more
Penny shares are the black sheep of the investment market. Most investors ignore these shares because they simply don't know how to deal with them.
Penny shares are volatile - They'll be up one day and down the next. Their share prices tend to swing around violently leaving investors that are unprepared for this activity nervous and afraid of what the share price will do next.
But there ar... ››› more
Since the markets opened on 4 January 2016, Vodacom's share price has increased nearly 6%.
Its closest rival, MTN's share price fell nearly 5% since the markets opened.
Telkom on the other hand has proved that it's less than worthy down nearly 11% over the same time frame.
But there's one man that's smiling all the way to the bank. That's Vodacom's CEO Shameel Joosub...
Vodacom pa... ››› more
“Francois, what happened? On Monday 30 May my Bidvest shares suddenly dropped by 67%? Isn't this is a blue chip share you recommended for South African Investor members?” - JJ
If you own Bidvest shares you'd have noticed how the share lost 67% on Monday 30 May.
And I'm sure it might have been a shock. Especially because the share is seen as such a safe, consistent share…
Bidvest... ››› more
Gary Booysen, Rand Swiss Portfolio manager, and professional trader, has just uncovered a powerful short-term short-trading profit opportunity for you in South Africa's telecoms sector. If you're interested in taking on the risks involved with shorting geared trading instruments - in exchange for the massive gains up for grabs - then you will want to read on for Gary's full technical analysis on t... ››› more
Niveus Investments is an investment holding company. The company has a listing on the Johannesburg Stock Exchange…
Full name: Niveus Investments Limited
Short name: Niveus
Sector: Investment instruments – equity investment instruments
Five top facts about Niveus Investments
Niveus Investments has three main unlisted investments. These are across a range of ... ››› more
Pallinghurst Resources is a private equity company focusing on companies within the mining sector. The company has a listing on the Johannesburg Stock Exchange…
Full name: Pallinghurst Resources Limited
Short name: Pallingt
Sector: Investment instruments – equity investment instruments
Five top facts about Pallinghurst Resources
Pallinghurst Resources focus... ››› more
Spur Corporation is a restaurant franchisor of a number of brands. The company has a listing on the Johannesburg Stock Exchange…
Full name: Spur Corporation Limited
Short name: Spurcorp
Sector: Travel & leisure – travel & leisure
Five top facts about Spur Corporation
Spur Corporation employs around 368 people across its operations.
Spur Corpora... ››› 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.