In this Issue: Bargain at over 30% discount Globally, investor sentiment is at a low, investors on the JSE are no different. They are faced with the same issues and risks as global investors but with the added risks locally. It’s not easy...
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In this Issue: The hunt for yield in an upside-down world A tax efficient way to invest in property stocks The hunt for yield and aversion to risk is causing something we have never seen before. Interest rates and bond yields are falling globally...
In this Issue: PSG backed education provider bottoms out at R2.22 Private tertiary education providers fill an important gap The most lucrative opportunities are found in times of maximum pessimism. Investors just need to filter through the noise for the right shares to...
In this Issue: Here’s why this unbundling is great for SA Investors Prosus will be the third largest company listed on the Euronext Amsterdam You need to own Naspers on 12 September (Ex-div date) to qualify for Prosus shares or additional Naspers shares....
In this Issue: Investors are bearish and pessimism is high Emotions affect returns Following on from last week’s article where I quoted Sir John Templeton as saying “tell me where there is the most pessimism and I will tell you where to invest”. That...
Gold Losses shine as Trump signals “Trade Truce” 3 Stocks to look at… Trade ideas update Last Chance to invest with 100% downside protection FINOVA Investors Digest – View the Statistical Data Table Gold Losses shine as Trump signals ‘Trade Truce’ President Trump’s...
In this Issue: Asset Prices Get Distorted – providing unique opportunities Buy Old Mutual as CEO spat affects investor sentiment Structured Products deliver returns in uncertain times Finova Investor Digest – View the Statistical Data Table As Winston Churchill once said “Never let...
Earnings Season’s Biggest Week Structured Products deliver returns in uncertain times FINOVA Investor Digest Globally, investors will be eyeing second quarter (Q2) earnings releases this week from some of the world’s largest companies like Visa, Boeing, Facebook, AT&T, Alphabet, Amazon, Starbucks and 3M....
In this Issue: Bidcorp rally runs out of steam Featured Offshore Structured Products – 100% downside protection The Week Ahead Other Economic data releases of interest Investors Digest – View the Statistical Data Table Bidcorp rally runs out of steam Bidcorp’s upside breakout...
In this Issue: Profit as the Rand blow out settles! Buy Netcare before an oversold bounce The Week Ahead Other Economic data releases of interest FINOVA Investors Digest – View the Statistical Data Table Profit as the Rand blow out settles! The Rand fell...
In this Issue: Take profit on Telkom today! Buy Discovery as it bounces from Support The Week Ahead Other Economic data releases of interest Investors Weekly Digest – Statistical Data Table Loaded Here Take profit on Telkom today! Telkom released annual results last...
Sasol’s share price collapsed last week after it announced cost overruns at its Lake Charles Chemical Project. The project will cost around $1 billion more than expected but the share prices has shed almost $4bn on the news. At R 356, our JSE stock...
The JSE heavy weight Naspers has pulled backed after it rallied over 50% from its 2018 low. The pull back is due to a global market sell-off sparked by President Trump escalating the Trade war and ‘kicking out’ Huawei. Below is a chart of...
Investors have been banking profits and positioning their portfolios for an escalation in the “Trade War”. Panic and fear haven’t gripped the market gauging by the increase in the VIX over the past few days but that could all change with further tit-for-tat tariff...
The UK market has rallied over 9% year to date (the market was closed yesterday). But it remains just above a multi-year trading channel dating back to 1999. Investors and businesses don’t like policy uncertainty and Brexit has created almost three years of it. The...
The old stock market adage of “sell in May and go away”, seems to be ringing true for the JSE as we approach May. The JSE (Top 40 future) is pulling back, testing a crucial support level. If this support level holds, we could...
EOH is trading at a 50% discount to its NAV even after jumping 14% yesterday. Traders who are short and investors who dumped stock to sit on the sidelines, can’t wait and risk a massive rally as its results are released this morning. Investors...
On listing day, in September 2014 its share closed 75% higher from the IPO price of R2, the next day saw it close another 28.85% up. Investors clambered for stock in the “new kid on the block” asset manager pushing it higher week after...
SuperGroup’s share price has returned to where it was beginning of 2015 and has been stuck in a range between R45 and R33. It has bottomed out around R33, half year results put it’s NAV at just below R29 growing at 16% (CAGR) over...
EOH has been dogged by many allegations and it’s share price is down from its 2015 high of R180 to R18.11 at yesterday’s close. This has resulted in EOH’s share price dropping to around its net tangible asset value of R17.07 (FY2018), the NTAV...
On Friday Firstrand (JSE: FSR) released a positive trading update indicating earnings will be up over 22% on the back of its final payment for the Discover Card transaction. This R2.3 billion is a welcomed boost for FSR as its operational earnings growth has...
The headline sounds too good to be true, but it isn’t. It’s the result of a corporate action on an unpopular stock. Corporate actions are often boring and don’t bring profit opportunities. Sometimes they result in special situations that bring almost guaranteed profits. These...
With just 12 days left of the Tax year and the budget speech next week, this is the time of year, that you should be evaluating your investments and retirement savings and maxing them out as much as you can. While many people know...
The Rand has been one of the strongest EM currencies in the past few weeks, but the strength will be short lived. The Rand has been boosted by a dovish FED, an ECB trying to balance monetary policy and economic growth, and the easing...
Dischem (DCP:JSE) has pulled back considerably in the past two weeks to its May 2018 low. This isn’t on any company specific news but a broader sell off in the related retail stocks following lacklustre results. Clicks trading update for the 20 weeks to...
AB InBev (ANH:JSE) is bottoming out above R1,000 per share after making its high a little over R2,000 in Feb 2016. Looking at the European listing, the share has only been this oversold twice before and both times a massive rally followed. The downward...
After a turbulent 2018, emerging markets are finding favour amongst investors looking for value with strong upside potential. This is on the back of a few major themes that should play out: A dovish FED that is expected to only hike rates once in...
2018 was a wild year for investors as almost everything except cash produced negative returns. Brent crude was down 19.5% for the year sending Sasol back to where it started the year after staging a spectacular rally above R580. The R400 support level has...
The UK still think they have wiggle room to please everyone ahead of the 29 March exit from the EU. Theresa May admitted her vote scheduled this week would go against her. She will most definitely try and re-negotiate a few key conditions, which...
President Trump sent global markets roaring higher after he and President Jinping agreed to de-escalate the tit-for-tat tariffs. It’s only for the next three months, but signals Trump is realising the potential damage he is causing to the US economy. This is good news,...
Globally shares are deep in correction territory, offering patient investors opportunities to deliver returns in tough market. Sasol has corrected almost 30% from its September high to below R420 on a weaker oil price and weak global sentiment. The R400 support level should be...
Most investors are losing patience with the JSE as returns have been non-existent. The JSE All-Share index is back in it’s previous trading range and effectively where it was in 2014. The problem with investors losing patience and selling, is they do it...
The JSE is at the whim of global sentiment. And one thing every investor should remember is sentiment drives prices, but company values change much slower. This provides investors with opportunities to accumulate mispriced shares at much lower prices than they previously did or...
AB InBev (ANH:JSE) has steadily fallen from it’s R2,000 high in Feb 2016 down below R1,100 today. The fall is as a result of them processing the massive take-over of SAB, the Rand strengthening and the market pricing in a dividend cut in the...
Last week Richemont (CFR:JSE) announced its joint venture with Alibaba. An opportunity for mass distribution like this could see Richemont’s sales soar over the coming years. Especially into China where Alibaba has a strong presence and China is expected to account for nearly 50%...
When the market opens today it will officially be in a bear market as the JSE extends the recent sell-off on overnight weakness offshore. Most of this sell-off has been driven by global politics and rising interest rates in the US, with other developed...
The week ahead: Local Data: Medium Term Budget, CPI (24/10); PPI (25/10) Results Due: CGR, CMH, PIK, PSG (16/10); ACS, DCP (17/10); DTC, SPA, SEA (18/10); PSV (19/10) LDT (16/10): CPI, CGN, ELR, GTR, ILRP2, ITU, JSC, RCL, RMI, RLF, SFN, TLM, TEX, WBO,...
Volatility provides buying opportunities, as investors panic sell and then buy after the inch higher. Investors were complacent leading up to last week due to low amounts of volatility experienced the past two months. The sell-off caught almost everyone by surprise. But these are...
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...
While October was the month we had Black Tuesday in 1929, Black Monday in1987 and a big sell off in October 2008 post Lehman’s collapse, it generally ends the month up. Over the past 100 years the Dow and S&P have ended positive...
The rand has been buoyed by tighter monetary policy in Turkey, Russia and Argentina. Our local inflation data assisted in the strength even though the Reserve banks held rates on Thursday. The Rand has gained over R1.30 against the Euro, USD and GBP in...
Buying shares at a significant discount provides some downside protection. Knowing you bought R1 of assets for 79 cents gives you comfort, and one investment holding company is trading at exactly that. While investment holding companies typical trade at a discount to their...
Emerging Markets go from Cheap to Cheaper Currencies from emerging markets are losing ground against the majors, giving international investors more “bang for their buck”. The latest bout of weakness comes on the back of CPI in Turkey spiking to 18% and PPI to...
Global markets are riding a rising tide of positivity from; hawkish FOMC meeting minutes, US Fed Chair Powell indicating US economy is strong and a positive US and Mexico trade deal. Investors shouldn’t fear new record highs because historical market data indicates it’s...
The Rand is against the ropes after renewed calls to nationalise the Reserve Bank by Julius Malema. Malema clearly hasn’t followed the demise of Argentina and recently Turkey after their central banks lost independence and credibility. International investors will most likely be paying...
The JSE remains in its consolidation phase but the current Rand weakness has created opportunities to buy some blue chips on the cheap. The Rand has followed emerging market currencies lower over the past week on the back of concerns in Turkey. The...
The JSE has remained buoyant after falling due to the ANC’s EWC announcement last week. It’s been range bound since breaking above its previous consolidation phase. A rally into year end, is still on the cards due to several JSE heavy weights earning significant...
President Trump dialled down his trade war antagonism by pushing for less tariffs with Europe. This saw investors focus on other data points, which provided support for risk assets like the Rand. Last week we had a positive BRICs summit, the ECB held...
The JSE was one of the few markets that ended last week lower. The Rand strengthened on the back of China being more passive in the “Trade War”. Commodity prices also pulled back last week causing the resources sector to impact the market performance....
After a wild two weeks, the Top40 is quickly approaching a key resistance level as the US dollar softens. This is on the back of US Jobs data that signals the Fed will hike gradually. And “Trade War” fears that have subsided. This...
The JSE finished the month and quarter with a very strong rally of 3.3% on Friday, never the less, that rally was not enough to close the All Share Index in the black for the year-to-date. Financials, Small and Mid-cap shares are down while...
President Trump has pushed forward with additional rhetoric about bigger tariffs against China. And even changing significant legislation to block Chinese investment into “key” sectors for economic and national security. After Daimler warned its outlook for the year ahead isn’t positive considering the...
This week is full of event risk; the US interest rates announcement, the market expects a 25-basis point increase, with an 85% probability, US and North Korea summit, US CPI, UK unemployment, ECB committee meeting and Italian policy uncertainty. All of these could push...
Q1 GDP coming out at -2.2%, the worst since Q1 2009, reflects that the Ramaphoria optimism has not resulted in any tangible results and likely kept investors complacent. The Rand strength is hard to explain and perhaps it will weaken while investors and...
The Rand has bucked the emerging market currency trend by strengthening 7.6% year to date. The Brazilian Real, Indian Ruppee and Turkish Lira have all weakened over 7%. The Turkish Central bank surprised the market with it’s 3% interest rate hike last week. ...
Global markets remain robust with no clear signs of a downturn as volatility slowly declines. Investors are buying even the smallest dip, which has seen the market remain in a bullish phase this past week. On the currency front, we could see gradual...
Global markets are being held up by strong first quarter earnings releases and US data from last week that signals US inflation is being controlled. Over 80% of the S&P 500 has released Q1 results and 78% of them have exceeded expectations. If...
If you are looking at the potential risk adjusted returns from shares over the short term, the answer is yes. There are number of growing factors that are worrying money managers and the most notable is the flattening of the US yield curve (when...
The Rand is on the back foot as US treasury yields jumped towards 3%, an important psychological level for investors. The weaker Rand helped the resources and rand hedge industrials rise yesterday as banks and retailers pulled back. After a surprisingly strong...
The market has remained robust as Trump shifted most of his focus away from a potential trade war with China to Syria. This has helped the market bump higher as it tries to break above its 200-day moving average. The market remains in...
The market sold off strongly last week Wednesday, but only for the morning. This was an opportunity for the market to reset, find a bottom and allow buyers with fresh capital to come in. The ALSI future came within a couple points of...
Global markets typically have a good run in April before the “Sell in May and Go Away” period, but the spike in volatility in February and March has shaken investors. With global markets down year to date, we should see investors buy this dip...
Late Friday night Moody’s released its rating for South Africa and reaffirmed its sovereign debt rating at investment grade. It even improved its outlook from negative to stable but stated policy ineffectiveness could “… undermine confidence, growth and social cohesion, with inevitable consequences for...
The RMB/BER Business confidence index for 2018 Q1 rose sharply to 45, the highest level since 2015. A level above 50 is considered positive, but it’s a move in the right direction. As mention last week, improvements in investor, business and consumer confidence...
Economic data for January showed some positive signs, but sentiment took another hit after parliament voted to change the constitution regarding lands rights. Despite assurances that this should be done on unused land, without affecting food security and focus on the development of new...
President Ramaphosa announced a late-night cabinet reshuffle that has seen some key Ministry replacements, notably the return of Nhlanhla Nene to the finance ministry and Pravin Gordhan as Public Enterprises Minster. One of the most important legislative changes made in the past week...
Last week saw a strong bounce following Zuma’s ‘sudden’ resignation after re-iterating he “hasn’t found someone that can tell him what he has done wrong”. Traders started to take profit on Friday, which will see the markets trend lower before the budget speech...
The first week of this month has seen investors being spooked by a selloff in stocks and bonds. This will be short lived and allows investors with new money an opportunity to invest this fresh capital at a lower level. The global market...
February is the month most people focus on the budget speech, some want to see how much more they will spend on Alcohol and Cigarettes while others focus on maximising their retirement savings. You can save 27.5% of your total remuneration, limited to...
The International Monetary Fund has increased its global growth forecast to 3.9% for 2018 on the back of US Tax cuts that will most likely stimulate growth. Typically, global growth above 3.5% is a strong catalyst for commodity price growth and emerging markets. ...
The market and currency has responded positively to the appointment of Cyril as President of the ANC. We’ve seen the Rand on the longest weekly wining streak since 2002, as foreign investors that were sitting on the sidelines start deploying capital in to...