Early on in the COVID-19 pandemic there was a ‘nerdy' accounting joke doing the rounds saying that soon we'd see EBITDAC - Earnings before interest, tax, depreciation, amortisation and corona.
While there's no ‘official' accounting term like that - companies results do show the effects, the pandemic has had on them. And many are opting to call it ‘once-off expenses.
Suddenly the ner... ››› more
Almost everything sold off big earlier this year. But after that, one US sector was the first to hit new highs again.
And it did so in April.
Since then, this sector's uptrend has been accelerating.
In fact, stocks in this sector continue to shatter old "new high" records almost daily. They've been on an impressive rally - up more than 45% since bottoming in March.
Despite this… ... ››› 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 global stock market indices continue to rally, with a handful of companies contributing to the positive performance since the march lows.
And while the anecdote says, “a rising tide lifts all boats”, this isn't the case. Many sectors in the market are just bobbing up and down and not moving decidedly higher. These overlooked companies offer value, still 20% or more below their pre Covi... ››› more
Everyone has favourites. A favourite food. A favourite colour. A favourite vacation spot. And, even though you'll never admit it, some people even have a favourite child.
For me, this pertains to the world of stocks too.
So, what is that one stock? The one I just have to hold no matter what anyone says?
Well, it's a company that, for the longest time, operated in the shadows of its mai... ››› more
While there have been epidemics in our lifetime, none have had the level of response from government's that we're now seeing.
And while it's now become clear that we'll have to deal with lockdown measures for longer than many initially thought - we're also far enough through this crisis to start looking ahead.
How will our economy recover, will it be quick or slow? Will we see inflatio... ››› 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
When do you sell a dividend stock?
Some investors love dividend stocks so much they will never sell.
But if your goal is to generate a consistent growing income, knowing when to sell can be tricky.
After all dividend stock prices can fall and dividends can get cut… so what then?
Here are three warning signs to look out for to know when to sell.
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Happy New Year and welcome to 2020.
The last time we entered a new decade, the world was recovering from the 08/09 Financial Crisis.
Since then, the US stock market has repeatedly hit new all-time highs (despite some bumps in the road).
And while we know the turning point in the cycle could be around the corner… we have to remember…
... ››› 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
There are 322 shares on the JSE with market capitalisations of lower than R5 billion. These shares (bar a few ETFs and Preference shares) we can call ‘small caps'.
These are the smaller shares on the JSE that don't fit into the Top 40, or the Mid Cap indices.
We can further segment these shares - looking only at PENNY SHARES. These are small caps with share prices below R10. Of these sha... ››› more
It's that time of year again…
Just like children eagerly wait in anticipation for Santa to deliver presents to them, so do investors.
Investors are waiting for the arrival of stock market profits during Christmas time as well.
This is all because of the Santa Claus rally which is, right now, flooding the mainstream media.
Go to Google, Bloomberg, Business Times and you'll see big ... ››› 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
Black Friday is almost upon us.
And many shoppers are already hunting for potential “Black Friday” bargains.
But I have another idea for you…
As ordinary South Africans head to the stores, set on spending more, owning more and having more, why don't you park the trolley and, instead take this opportunity to treat your future-self.
Now I'm totally for saving money.
And, I ... ››› more
Last week, the US Federal Reserve finally cut interest rates again. The rationale behind this move is to help sustain US growth.
Now the quarter-point cut marks the third rate cut this year. And this can be good news for stock investors. In fact, following the latest announcement, US stock markets hit new highs.
But even better….
If history is anything to go by, we could see US stock... ››› 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…
‘The Great JSE Takeove... ››› more
In 2019 alone there have been 19 shares delisted from the JSE.
Not because they're bankrupt…
Or have violated regulations
Or just because it's too costly
They are companies that were selling for WAY less than what they were worth.
Companies that have been grabbed up by astute investors, companies and funds that know the profits they make are worth a lot more than t... ››› more
Trump may have imposed 100s of billions of dollars on tariffs in the US China trade war and it seems he isn't about to stop there…
In fact, the trade war could escalate to a new level of madness where we see the US delist a number of Chinese companies from the US stock exchanges.
Just to put it into perspective, in February, as per government data, there were 156 companies that traded on... ››› more
The rand is at R15.37 to the dollar - the weakest we've seen since the Zuma era. We can blame this on NHI, EWC or a string of other three lettered government policies that aren't business friendly.
But at the end of the day the whole world is running scared right now.
Thanks to the US trade war, negative bond yields in many European countries and increasing world debt.
In fact, for t... ››› more
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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.