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.
___________________... ››› 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
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
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
So, you want to invest in JSE-listed penny stocks….
But you don't know where to start?
There are hundreds of stocks out there, and so little freely available information.
Today I'm going to run you through four crucial questions you should ask yourself before making any penny stock investment.
Think of it as the first cut - the criteria with which you can start looking at the pen... ››› more
JSE listed stocks are selling at their cheapest levels in a decade.
And that's created an opportunity for internationally listed, and private equity companies to make a mint.
You see, these companies borrow money internationally at 3%, 4% or 5% interest. They then buy these South African companies that are selling cheaply and the dividends they receive from them are enough to repay their b... ››› more
Let me be clear…
The investment I'm about to introduce to you is not for everyone.
It can be risky.
But if you're willing to take the risk, there's a handsome payoff for you!
In fact, history shows you could make you a +27% over the next 12 months.
The investment I'm talking about is…
If you’re not familiar, value stocks are compan... ››› more
Q. “Hi Timon, I read the weekly article where you expect the JSE ALSI40 to rally.
My question is, if Moody's does eventually decide to downgrade South Africa to junk what would happen and when is the next grading?”
A. The next possible downgrading for South Africa would happen as soon as March, if South Africa fails to come up with a plan with “Credible debt-stabilisation”.
... ››› more
We all know how ‘Black Friday' sees the most incredible deals in shops every year…
These deals are typically 30%, 40% and 50% discount on everything you buy.
In the same way I foresee great ‘Black Friday' specials on the JSE this year.
What am I talking about?
Well, since 2018 there have been around 35 companies delisted from the JSE. Around 10% of all the small cap shares on... ››› more
Q. "Hi Timon, I'm looking to expand the number of international shares to trade. I have seen through Real Wealth and Trading Tips that there are a number of growing industries in the world. Three that come to mind include: Artificial Intelligence, Electric Cars and Renewable Energy... Could you name a few of the large names that make up these industries so that I can add these shares to my watch l... ››› more
Sometimes the stock market behaves inexplicably.
Quality companies trade at unbelievable discounts. Or they sell at prices so high that you might flinch.
What makes this difficult to muster is the fact that these ‘discrepancies' tend to keep going on for much longer than you'd think possible.
One such share was Curro Holdings.
The company listed in July 2011 and investors could p... ››› more
Disclaimer 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 on this website.
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 website.