We bought into Dischem back in May at R30.50 and added to it in July at R28.00 banking us 12.5% when we closed it at our trailed stop loss. 


It has again fallen below R30.00 and support should build at R28.00 with any sell-offs below that level being short lived. 


Management provided an update to expected earnings for the FY2019 that will be a tailwind for the share price to move back above R30 and towards a target of R37.50.   


The interim results due next week Wednesday will provide a little more colour to the past 6 months to August. Analysts will be looking closely at the wholesale division which Management guided would be at break even at FY 2019. 


Management will have an opportunity to provide an update to the market, if they are on target we should see a strong bounce above R30.00 


Buy Dischem at R28.05 for a move above R30.00 in the short term. 


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Market at support and ripe for a rally 


The JSE is trading at a crucial support level after selling off over 7% from September’s high. Investors who have been looking for a good time to deploy cash should be allocating funds to their existing holdings, stocks like Naspers, Aspen, Remgro (if exposure is still reasonable). 


We’ve closed Discovery for a 6.6% gain and will be looking to re-enter at better levels. 


The week ahead: 


Other Economic data releases of interest… 



Short Term Ideas 


Long Term Ideas