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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, 2023
Mar 29, 2023

Simon Shares

  • MPC announcement Thursday.
  • Purple Group* (JSE code: PPE) git the 120c bottom of the range, but has suddenly rallied.
  • Steinhoff (JSE code: SNH), we now know what as the "Board agrees on a radical draft plan to enter into an insolvency process with creditors".
The problem with dividends - they not tax efficient.

They are great

But tax.

Dividend Withholding Tax (DWT) is 20%. The maximum Capital Gains Tax (CGT) is 18% after the annual R40k exclusion.

And DWT you pay along the way, eroding your return over time whereas CGT you only pay at the end.

Warren Buffett Berkshire Hathaway has never paid a dividend and he says they never will. Rather sell he says, more tax efficient.

Share buys backs are more efficient, but done at high valuations destroy capital.

No easy answer, but maybe we should temper our love?

* I hold ungeared positions.


Simon Brown


Mar 23, 2023

Simon Shares

  • Federal Reserve FOMC raises 0.25% and the market drops as Fed says almost at the top.
  • Local CPI comes in slightly higher at 7.0%.
    • MPC meets next week, hold on rates or another +0.25%?
  • Credit Suisse 'sold' to UBS.
  • Steinhoff (JSE code: SNH) votes against the debt deal, now what? Bankruptcy surely?
  • Transaction Capital (JSE codeL TCP) bounces, where's the value?
Mar 15, 2023

Simon Shares

  • Silicon Valley Bank collapse, does this put a pause on US rate increases? FOMC next Tuesday/Wednesday.
    • "Moody's cuts outlook on U.S. banking system to negative, citing 'rapidly deteriorating operating environment'"
  • Miss expectations and get slammed
    • Transaction Capital
    • Absa
    • MTN
    • Multichoice
  • Hold winners, ditch laggers.
    • Sun International (JSE code: SUI) vs. City Lodge (JSE code: CLH).

ff


* I hold ungeared positions.

Mar 8, 2023

Simon Shares

  • The local Q4 GDP came in at -1.3%, worse than expected -0.4% and shows the real pain of load shedding and Transnet issues. Q1 2023 not expected to be any better. Every set of results mentions load shedding and retailers are spending ±R1billion a year on diesel.
  • Rand is looking weak, very weak.
  • Grindrod (JSE code: GND) had good results and are clearly benefiting from the failure of Transnet ports.
  • Bank results are looking good with Firstrand (JSE code: FSR) very strong and Nedbank (JSE code: NED) good and doing a R5billion share buy back.
Mar 1, 2023

Simon Shares


City Lodge* (JSE code: CLH) results
  • Stale bulls
  • Dividend of 5c
  • Occupancies at 57%
  • Debt gone
  • Cater for business, who are Zooming more
  • Overall a bit light

Spur (JSE code: SUR) results vs. Famous Brands (JSE code: FBR).

* I hold ungeared positions.


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