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JSE Direct with Simon Brown

Weekly podcast hosted by Simon Brown covering the JSE and listed companies.
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Now displaying: March, 2017
Mar 29, 2017

Simon Shares

  • Capitec* (JSE code: CPI) through results got everybody talking about the "arrears coverage ratio" dropping to 208% vs. 223% previously and vs. 196% in 2015. This got all the attention last time as well, I not concerned and my 'aggressive' buy price is now around R719.
  • I have some USD expenses due in the next week or so and have taken a hedge using NEWUSD* just in case.
  • Anchor Capital results showed a serious slowing of growth but still a stock with a great looking future and at around 600c very attractive.
  • I have bene trying to add to my very very small Sea Harvest* holding but I don't want to chase the stock as I think we may see some weakness in the weeks ahead. 1275c would be my ideal entry. It traded 1270c last week, but I wasn't paying attention and missed them.
  • UK has triggered Brexit and now Scotland wants out of the UK.
  • A really excellent post by Kristia on bond ETFs.
  • Upcoming events

* I hold ungeared positions.

Protecting yourself from the Rand

With the Rand getting all hot and bothered again after a protracted run stronger I thought a quick look at how we can manage our portfolio against a weaker currency. We have the easy things like offshore stocks that are locally listed, offshore earning stocks, locally listed offshore ETFs and the NEWUSD mentioned above. There is also a pure offshore bank or brokerage account or heavily invested into commodity stocks. But the bigger issue is that political squabbles are part and parcel of being a South African investor and Rand weakness is also our future, even if at times we have strength. So we need to build a resilient portfolio that survives these events.


JSE – The JSE is a registered trademark of the JSE Limited.

JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Mar 22, 2017

Simon Shares

  • Capitec* (JSE code: CPI) through R800. This is why I don't try time exits on long-term investments. Things can get crazy.
  • Pembury is listing their schools division and it will likely do well on listing but I am not convinced and am not applying for allocation.
  • Has the Trump rally hit a wall?
  • Most of the cash for my Sea Harvest allocation has reappeared in my brokerage account, suggesting I got 3.8% allocation. We'll see how it trades as to whether I buy more in open market sell and run. I would like to hold in my second tier portfolio, but only if the numbers work and if it spikes madly on day one I will more likely sell into the spike and wait for things to settle.

* I hold ungeared positions.

Buying Bitoin (Code: BTC)

Started in October 2008 with zero value as the first crypto currency it now trades around US$1,100 and has an ardent fan base. The questions are if it is the future of money? CoinMarketCap lists over 750 crypto currencies with a total market cap of over USD24billion. That said Bitcoin has a market cap of almost US$18billion with Ethereum on a market cap of almost US$4billion (up almost 50% in the last week) leaving very little for the other 750 crypto currencies. But they are very volatile and a commodity rather than a currency, but should we be investing or trading in them?

We Get Mail

  • George
    • If people want interest, they want the most interest. My question is simple. Why are there so many options? Govi, Ilbi, or a call account with my bank? Which do I pick and why do I pick it?
  • Stephen
    • If I am looking for somewhere to park cash (i.e. protection of capital and quick access are key), other putting the money in a bank what would be the more suitable options? Also in this respect would there been any advantage in investing in an inflation linked bond ETF as opposed to directly in a bond?

JSE – The JSE is a registered trademark of the JSE Limited.

JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Mar 15, 2017

Simon Shares

  • Anchor Capital (JSE code: ACG) been getting pounded, after almost 2000c in late 2015 now around 600c.
  • HomeChoice International (JSE code: HIL) is an online machine at making money, but liquidity is zero. Four trades this months and a spread of 1400c / 3540c. So just avoid.
  • Oil under pressure, good for fishing companies and motorists. Sasol* (JSE code: SOL) has some hedges at around $47 and is looking good for a buy at around R360.
  • Last week I commented was looking to pick up more Tongaat* (JSE code: TON) around R123.50 then then the drought update and stock has flown, now R133.
  • I have updated most of the prices to be paid for my death till us part stocks here.
  • Standard & Poors still rattling around pondering a downgrade for SA. Next release in June and then December by when they have to either downgrade us or remove the negative outlook.
  • Choppies (JSE code: CHP) results tough as they try and take on the big guns on their back yard.
  • Blue Label (JSE code: BLU) about to buy Cell C, I not impressed with buying the their operator in a tight market. Some saying they are next Capitec* (JSE code: CPI), can't see how or why.
  • Foresight Solar Fund listing, looks interesting as a dividend / Sterling play.
  • Upcoming events

* I hold ungeared positions.

We Get Mail

  • Anon
    • I hold a small penny stock I bought years ago and it is now down about 95%. What do I do now?

JSE – The JSE is a registered trademark of the JSE Limited.

JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Mar 8, 2017

Simon Shares

  • Metrofile* (JSE code: MFL) results were modest but the dividend was up 18% at 13c and core operations also increased 18%.
  • You can now buy shares in the South African Reserve Bank! But should you?
  • Sea Harvest (JSE code: SHG) will be listing later this month. I will apply for allocation.
  • Tongaat* (JSE code: TON) is coming under some selling pressure down to around R123.50.
  • Upcoming events

* I hold ungeared positions.

Is Buffett a value investor?

<script>

It is well known that Warren Buffett learnt investing from the father of value investing - Benjamin Graham and many still consider Buffett to be the worlds greatest value investor. But while he may be the worlds greatest investor he is not a value investor having abandoned that strategy way back. If anything he is 'growth at reasonable price' investor. The book Common Stocks and Uncommon Profits by Phil Fisher really explains his current investing methodology.

We Get Mail

  • Glen
  • LH
    • But what do you do when your ETF of choice halves in value?!
  • Boitumelo
    • Basically I want to know if switching is worth the tax free incentive.

JSE – The JSE is a registered trademark of the JSE Limited.

JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Mar 1, 2017

Simon Shares

  • New tax year and I have already loaded another R33k into my tax-free account and will be buying as per our high risk model portfolio.
  • The annual Buffett letter was published last weekend. Always good reading, I especially like his comments on buying assets with shares (and hence paying a fortune). He also updates on his bet on the VOO vs. hedge funds (spoiler, VOO wining by a mile). The AGM will be webcast here on 6 May.
  • We update the momentum portfolio stocks for 2017/8. Last years return was -5.2% after all costs and behind the benchmark so disappointing. I am NOT re-entering the portfolio this year for two reasons. Too much stuff and the ABSA NFEMOM ETF now uses my methodology and is more tax efficient.
  • Upcoming events

Becoming a trader

The most frequent question Simon gets is about becoming a trader and his first answer is always the same, it will take time. Lots of time. In this weeks podcast he goes into details about the skills needed, capital, tools and more.

Some resource;


JSE – The JSE is a registered trademark of the JSE Limited.

JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

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