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% of the luxury good market in the next six years.
And CFR’s share price has bottomed out around R100 after a fall from above R133 8 weeks ago. Investors and Asset managers will be accumulating at this level, which will see the price start to rise. Look at the chart below.
Buy CFR below R105.00 with a target price of R130.00. Risk averse investors can place a stop loss at R95.00 to limit their risk.
Last week’s Movers and Shakers
The week ahead:
- Local Data: PPI (25/10)
- Results Due: CMO, PFB (30/10); CTK, DLT, NFP, HUL, MNK, REN, SNV (31/10); AFT, LON, MIX (01/11); ISA, TFG (02/11)
- LDT (30/10): BAWP, DCP, EQU, NRL, PHM, KST and a few Ashburton ETFS
Other Economic data releases of interest…
- Tuesday: CB Consumer Confidence (USA); BOC Gov Poloz Speaks (CAN)
- Wednesday: CPI (AUS); Monetary Policy Statement, BOJ Outlook Report (JP); GDP, BOC Gov Poloz Speaks (CAN); SNB Chairman Jordan Speaks (CHF)
- Thursday: Manufacturing PMI, BOE Inflation Report, Monetary Policy Summary, Official Bank Rate (UK); ISM Manufacturing PMI (USA)
- Friday: ANZ Business Confidence (NZL); Retail Sales (AUS); Unemployment Rate (CAN); Non-Farm Employment Change, Unemployment Rate (USA)
Add these 5 shares to your portfolio before the Christmas rally
Long term investors can add Remgro, Coronation, Aspen, MTN and Naspers if they have a low to no exposure in these companies. Their share prices appear to be bottoming out and this might be the low before the Christmas rally. See our other ideas below.
Short Term Ideas
- Goldfields: 12.77% open gain, increase target to R45.25, stop loss remains R38.25
Long Term Ideas
- Dischem: Up 4%, and target of R37.05 remains in place.
- Lewis: Buy below R30, target R47.50.
- Remgro: Moving higher, buy dips below R180.
- Coronation: Accumulate below R50.00 for a move back to R80
- Shoprite: A break above R200 is needed to curb further declines. Hold.
- Aspen: Add below R165.00, keep exposure appropriate.
- Sygnia: Trading below R8. Add
- MTN: Average entry price R92.50. Support building above R80. Hold
- Glencore: Pulling back, buy below R52.50
- Naspers: Long term trendline providing support at R2,460.
