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
Just when you thought 2020 couldn't get any stranger…
Out of left field, Kodak shares exploded onto the scene with a 2,760% weekly gain.
Let's put that in context. If you'd bought R10,000 worth of Kodak this Monday, your account balance would now be R276,000 at time of writing this article!
That's without any fancy gearing or exotic structures. This is simply by buying ordinary Kodak... ››› more
Rand strength over the last two months is now providing another opportunity for you to review offshore investment allocations. I'm always amazed at how many clients scramble for offshore investment after the horse has bolted and dither when they should take action.
Finova's global portfolio returned 2,65% in USD for the 12-month period to 30 June 2020, a period that includes the Covid-19 Marke... ››› more
2020 has been one hell of a year. Coronavirus has ravaged most markets and yet certain stock markets have hit record highs.
Whatever the reason for the run up, the obvious divergence of share prices from the underlying reality seems to be all too apparent to professional investors.
So, is it time for you to hit the big red button? Is now the time to sell everything?
... ››› 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.
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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
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
Q. ”You have suggested that you've moved your stop loss on Kumba to close your trade at R363.00 to lock in a gain of 22.81%. The entry price was R350.18 and with the difference between the two is R12.82.
This is only a 3.66% move from where you entered. How do you arrive with a gain of 22.81%?
I look forward your explanation.”
A. To understand how I banked a 22.81% gain, w... ››› more
Q. “On Tuesday I bought 100 Remgro shares and when I woke up on Wednesday to check the markets, I was holding 69 RMH (Rand Merchant Bank Holding) shares instead. Please can you explain what happened?”
A. Believe it or not, the exact same thing happened to me.
Remgro went ahead with the unbundling process in Rand Merchant Bank Holdings to its shareholders.
Unbundlin... ››› more
In the last few weeks, we've finally seen good news come out for South Africa.
I don't want to go into too much detail, but I'll highlight a few of the main points including:
• More businesses and economic activity has started to resume since moving from Level-5 of the lockdown down to Level-4.
• The government has told South Africa that there will be no more load-shedding from Es... ››› more
You may have heard of the Butterfly Effect.
Chaos theory predicts it is possible for the flap of a butterfly's wing in China to cause a hurricane in the US. Though this sounds like fantasy, we may actually be witnessing one of the greatest “butterfly effects” in history.
A little while ago, likely in 2019, a single virus particle made a jump from bats to humans. In terms of scale, this... ››› more
Today will mark the end of the worst quarter for SA shares, having suffered the global fall out of the coronavirus.
This is after years of under performance relative to global indices.
And even though it looks like you can go out and buy anything and hold on for certain profits we could still see more selling pressure.
The SA lock down could be extended, and small business owners and ... ››› more
Buying a stock is only the first part of investing… Selling, and knowing when to sell is an even harder part.
Especially when the markets are in trouble.
And boy did we just have a tough week… with the JSE (and most global stock indices) down 10%+ on the back of the world economy.
But does this mean you should sell your shares and head for the hills?
Probably not… But let's h... ››› more
This coronavirus is getting out of control!
And markets couldn't care less…
The S&P500 is at record highs.
Chinese shares have bounced almost 8% from their lows.
And yet, every indication is, we're facing massive real-world consequences after the Chinese authorities continue to quarantine tens of millions of Chinese workers.
It's no wonder markets are pushing higher however a... ››› more
Q. "When it comes to Red Hot Storm Trader, what is the criteria you use to find the perfect markets to trade?"
A. In short, I look for the highest volume traded stocks on the JSE.
To find these stocks, I have a simple yet effective 2-criteria checklist.
Market cap needs to exceed over 20 billion
The market capitalisation is equal to the total number o... ››› more
There are two main methods you can use to pick stocks for investing or trading.
I'm talking about terms called “fundamental” and “technical” analysis.
You need to understand the differences between these methods - if you are to use them successfully as an investor…
Use them correctly - and you stand to make big profits. Use them incorrectly and you could lose out big time.
... ››› more
China is in chaos.
The Coronavirus has just about brought the world's second largest economy to a standstill.
As a nation, the Chinese have been restricted to their homes. The government has cancelled flights… Shut down cities… And tragically nearly 500 people have already lost their lives!
It's a disastrous social crisis, and one which has roiled global markets.
On the economi... ››› more
In the race to the world's first public company worth a Trillion Dollars, Apple is closer than ever!
Between November and December 2017, the company hit $900 billion - nearing the Trillion dollar mark…
With the IPhone, IPod and IPad - Apple has managed to become the largest company in the world!
But new, research points to the EV revolution being MUCH bigger!
The fact is, Electri... ››› 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
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