For the past two years I've continuously told investors that South African small cap companies present much better opportunity than most large cap stocks do.
In the past three months the Small Cap index is up 17.8% compared to 15.94% for the Top 40 index. That's why I sent my top 5 plays for 2021 to my Red Hot penny Shares readers just 2 weeks back.
But this outperformance has just starte... ››› more
Small cap stocks have had a tough time in recent years. While the underlying businesses in many cases did really well - their share prices didn't.
Between March 2016 and March 2020 the Small Cap Index was down 44%.
In the last 6 months though, the Small Cap Index is up 25%, erasing a great portion of its past losses.
And thus far 2021 looks like a scorcher for small companies.
In t... ››› more
So you've heard the terms bandied about.
Small Cap, Mid Cap and Big Cap stocks.
What does this mean - and how do stocks get labelled as either a small or mid cap for instance?
It is important to know the differences between these different categories of shares - as it will affect your investment strategy…
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‘The Great JSE Takeove... ››› more
In an interview with Fin24 energy expert Ted Blom said that the possibility of load shedding this winter is larger than the Day Zero water crisis in Cape Town…
Eskom responded by saying that its “Recovery plan to avoid load shedding working well.”
Acting CEO Phakamani Hadebe briefed the media saying, “Only six out of 15 power stations are experiencing coal shortages.”
... ››› more
I can remember my honeymoon like yesterday.
We were crazy in love.
And for months afterward this euphoric phase continued.
I could make no mistake in her eyes, nor she in mine. Everything was perfect.
Then suddenly reality struck. Our first big fight after getting married.
And suddenly we realized being married is tough, and the good times go hand in hand with the tough ones…... ››› more
The market and currency have responded positively to the appointment of Cyril as President of the ANC.
We've seen the rand on the longest weekly winning streak since 2002, as foreign investors that were sitting on the sidelines start deploying capital in to SA stocks. As mentioned late last year, the stocks on their shopping list are SA focused companies with earnings mostly generated locally.... ››› more
The biggest lie you'll ever hear in the stock market is that: “As a private investor you're not smart enough, and you lack the information to invest and make money on the stock market.”
It's a lie presented by fund managers, personal financial advisers and media analysts alike.
Obviously, they don't say it quite like this, but it's what they mean.
The essence behind their big lie i... ››› more
Over the past three years the JSE has gone nowhere!
On 4 July, 2014 the JSE All-Share Index stood at 52,060 points.
By the end of 3 July 2016 the same index stood at 52,164.
And yet it's PE is near an all time high of 19.94.
This makes the index ridiculously ‘expensive' and the average investor extremely despondent, crying where's the value.
But I'm hear to tell you, there's ... ››› more
Now that July's wrapped up, this year's second to last ‘earnings season' has come to an end.
Considering the South African economy is teetering on the edge of a recession, results haven't been as great as investors would've liked.
In fact, 14 out of the last 25 companies to publish results have been negative growth.
Nearly two out of every three companies are seeing shrinking profits or... ››› more
Between October 2015 and mid-January 2016 the JSE Resources index crashed 38%. Mining shares were out of favour more than they've ever been.
Since then, the index has recovered some of these losses, becoming one of the best performing sectors on the JSE for 2016.
In fact, since the resource index's January low, it's up 40% for the year so far!
But that doesn't mean you can just up and ... ››› 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
You've heard the term ‘Buy when there's blood on the streets'.
This is contrarian investing at its hear. But it's been proven true time and again.
In fact, if you'd simply bought a simple ETF like Satrix 40 following the 2008 financial crisis, you'd have made around 70%.
Investing in individual shares following the same crisis would've made you 200%, 300% and in many cases, 600% or m... ››› more
Last week, I sat down with Francois Joubert, the editor of Red Hot Penny Shares. I wanted to find out what makes his penny share selection techniques so successful.
After all, he's the expert that delivered exceptional investment returns like these five Penny Share recommendations that could have made you a fortune in almost no time:
• Transport Company SantovaLogistics (SNV:JSE) rose 221... ››› more
I love being a member of The South African Investor. Every month, the panel of investment experts reveal their favourite wealth building properties to grow and protect your hard-earned wealth.
Last month's issue of the South African Investor was truly something phenomenal. You see, Francois Joubert revealed four of his favourite undervalued investment opportunities in the market right now.
F... ››› more
Have you ever been warned by a friend or relative to stay away from the stock market?
Or, has a broker warned you that “those penny shares are incredibly dangerous”?
Have you been told to rather invest in an ETF or a unit trust because it's “much safer”?
Well, don’t listen to any of that rubbish!
Small cap shares can easily move 5%, 10% or even 20% on a single day. That’s ... ››› more
If you try to follow big news headlines and invest accordingly you'll be left entering every investment you make late.
That's why I love investing in Penny Shares.
It's contrarian. It's investing against the crowd. Most of all it's about investing in companies that don't feature in the news at all…
Here at Red Hot Penny Shares I scour the markets for little unknown companies with mas... ››› more
Tucked away in an unexplored corner of the JSE is a hundred or more little known small companies.
History has proven to be them the best performers on the stock market over extended periods.
And it's from this forgotten corner of the market that we've made returns like:
• 109% on Adapt IT,
• 129% on Conduit Capital and
• 221% on Santova
All these gains in a little more than... ››› more
“Francois: I read your article on using ‘buy limit orders' to buy shares at lower prices and decided to do it. But something seems to have gone horribly wrong. I tried buying R5,000 worth of shares with a limit price of 51c. But when I checked my account it only traded about R500 worth. My cost per share, after brokerage, is now 67c per share. What's going on???” - BM
The right tools, u... ››› more
Over the years I've noticed investors tend to ask the same things, but even more so - They make the same mistakes as well. It all comes down to human nature I guess.
That's why today I want to show you how to avoid the three most common mistakes I see investors make, over and over.
Classic Investment Mistake #1 – Investors bet the bank when they shouldn’t!
Penny shares can go ... ››› more
“Francois, what happened to share X today? It dropped 10% instantly!”
“Francois, what happened to share Y today? It soared 10% instantly!”
If you've been following the JSE over the last few years, you would've seen certain shares drop and jump by over 10% - more than once - in a single day.
So what is going on?
And what should you do if you'd rather be on the profit side of the... ››› more
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