Questions, questions, questions

Simon Shares

• Metrofile (JSE code: MFL) results saw HEPS +4.6% (very modest) and the full year dividend 42.9% putting it on a dividend yield of some 6%. Wowness and why I own the stock, for the dividend.
• PPC nil paid letters (NPLs) started trading yesterday as PPCN. People are asking me what to do with them and I am sticking to my story. Shorter term after they convert we may get a bounce, longer term PPC has real risks and I would not want to be a holder. So short answer is sell.
• Bidvest (JSE code: BVT) results were weak with single digit HEPS growth of 2.5% while Bidcorp (JSE code: BID) had great HEPS growth. We know the story and why they split, one local one offshore.
• Nigerian GDP stays negative and country is now in a technical recession. More tough times for local companies operating in that market.
• I am being asked if I am selling the gold stocks in the momentum portfolio? The answer is no, it is a rules based system and we follow the rules.
• GIVRES has done an amazing 99.5% in the last year, Kristia reviews the ETF and get expert commentary from Petri Redelinghuys.
• Next Thursday we have a JSE Power Hour, online or at the JSE in Sandton and we're going back to basics - always a good place to revisit. The topic is wealth creation 101 and is presented by Simon Brown.
• The second part of the Trading Master Class with IG is online, dealing with an index trading system.

We Get Mail

• George
  • I am 25 years old. I own DBX trackers for EUR, US and JAPAN as well as Ashburton Midcap (thanx to your lazy system). I now have an additional R10k to invest in my TFSA. I know what you would do: DBXWorld and a Top40 ETF. But my thinking is that I already have enough exposure to the world and instead of doing an SA top 40, maybe I should invest in an ETF that generates me dividends/interest for the long haul. This seems like a smart idea to a youngster like me. But being a youngster, my ideas are often not the smartest. I am currently thinking of investing in the Coreshares Preftrax ETF and/or the Proptrax Ten. Is this idea smart? If you were me, what would you do with the 10k?
• Ernst
  • South Africa's economy is not looking great at the moment, Gordhan, the rand, junk status. I would like to know if one should invest now in Top 40 ETFs or wait it out till these things happen and everything might be cheap (the value of shares ). Not sure how to use my X amount of money in this time.
• Jing
  • I have had a look at your portfolio and frequently watch your shows. A lot of it seems to be geared towards having offshore exposure and selecting shares with offshore operations. I am currently contemplating investing in developing/emerging economies namely India and China as I feel there is a lot of upside given the size of their economies and high growth rates relative to the rest of the world. I was wondering whether you had any insights on whether this would be a good move at present. Furthermore, are there any funds in South Africa that could give me such exposure to the Indian or Chinese stock exchanges? I know that there are a few shares on the JSE that have interests in China such as Naspers in Tencent holdings, but I am looking at having a broader and more direct exposure to these markets.
• John
  • Hi again Simon, the Stop Losses I have difficulty with are not in Trading but in Investing which are not the same as far as I'm concerned. Trading is far more hands-on. Have lost heavily with CCO & BAT post Brexit & realise I must be far more ruthless but am still unsure as to where I should have placed my SL's.
• Marcia
  • I am worried about the Rand and it weakening a whole lot suddenly. How can I protect against this?
• Sylvester
  • I don't have time to do trading but I want to invest, do I buy and hold ETFs or I look for someone to trade for me.

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.

Role of a Stock Broker in your investment journey

Simon Shares

• More finance minister concerns and more rand weakness. The bigger picture is you have to have a bigger picture investment view otherwise events like this will hurt.
• In the last of this three part series if you had R300, which ETF would you buy? We ask Warren Ingram and Craig Gradidge for their view.
• Trading Master Class, an index trading system is online and follow up in on Monday at 1pm.
• Tonight in Durban we have a JSE Power Hour - 9.97562 Possible Pitfalls in Investment Planning
• Our home ownership is the new broke podcast is still generating lots of buzz. Kristia has been on leave so we reward a bunch of Fat Wallet Shows, we will revisit the topic Monday week (5 September).

Role of a Stock Broker in your investment journey

• Simon Brown - Founder of JustOneLap.com
• Ridwaan Moolla - ABSA, Head of Digital Enablement in Wealth and Investments
• Charles Savage – Purple Group, Group CEO
• Kevin Algeo – IG, Head of IG
• Greg Kangleas - Vunani Private Clients, Head of Copy Trade and Portfolio Manager
• Grant Meintjes - PSG Wealth, Head of PSG Securities

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.

Where to for the Rand?

Simon Shares

• The Dow Jones, S&P500 and Nasdaq all closed at all time highs for the first time since December 1999.
• Dog stocks, don't mix price and fundamentals.
• I been buying PTXTEN after exiting my STXDIV and not being blown away by DIVTRX.
• If you had R300, which ETF would you buy? We ask Nerina Visser & Keith McLachlan for their view.
• Trading Master Class, an index trading system is online.

Garth MacKenzie TradersCorner.co.za

Where too for the rand? We've seen it stronger this year after a blow out late last year and into January. Garth offers a technical view and below is the long term monthly chart of USD/ZAR.

We Get Mail

• Fouche
  • Would there be any merit in the argument that Japan is 20 years ahead of "us" (USA Europe world markets that are applying QE) and we could be looking at similar years of sideways movement?
• Aaron
  • I have an aunt who wants to start saving R10k p/m for the next 12 months. What can you advise as the most suitable investment option. She asked for my advise but am not sure what to suggest to her as I think 1 year is a short period.
• Ryno
  • Thanks for the in-depth response to my question. With regulation stopping the building of a Berkshire lookalike wont it be a viable option for a DIY investor to buy say 5 or 6 REITs and use the income out of that as money to buy listed companies?

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.

Simon Shares

• US mattresses with Steinhoff (JSE code: SNH)? Paying more than double the last traded price?
• MTN looks all ugly. Forget the fine, forget over a billion Rands in associated costs. Nigerian and South African markets look weak and I still say they need to transition into being a data utility. That said there's a nice trade from around R122 - R140.
• SABMiller (JSE code: SAB) leaving the JSE on 11 October (most likely) after listing on the JSE in 1897 (just two years after being founded and a decade after the JSE was founded). SAB has been one of the key drivers of the Indi25 index over the last decade (SAB +472%, All Share +154%). They're going to leave a gapping hole.
• If you had R300, which ETF would you buy? We ask the Just One Lap team for their picks.
• The Fat Wallet Show goes where few are brave enough to trend. Renting vs. buying, what does the maths say?

Keith McLachlan from Alpha Wealth

Finding a local Berkshire Hathaway? Simon answered a listener questions suggesting that maybe Conduit Capital (JSE code: CND) was an option. The trick however is the regulatory environment and Keith McLachlan helps us understand what those Solvency Assessment and Management (SAM) regulations are and how difficult it makes for a company to model themselves on Berkshire Hathaway.

We Get Mail

• Caroline
  • Richemont (JSE code: CFR) has been falling steadily for nearly a year and is down 26.59%. Is it now regarded as a “Dog”???? Or because it is in your Death Do Us Part portfolio has it become a “Puppy”? Question – have you sold or not? My problem is Astoria (JSE code: ARA). I bought for long, long, term and that has fallen about the same. Do I bale and lose a large dollop of my portfolio which I am no longer in a position to recoup, or let it turn around with the Rand exchange rate. Problem is that might not happen in my lifetime!!! Decisions …. decisions
• Tax feedback
  • Just a point on not being able to offset trading losses against other income, believe you can as long as SARS didn't ring fence the loss and your chances are better if you are not at marginal tax rate,activity not deemed to be a hobby and not more than 3 losses out of last 5 tax years.
  • I can feel for Johan. I used the "Other income" to declare 'trading income' from various sources. I keep these income's to the bare minimum. HOWEVER.... No easy place to claim expenses as a separate entry. Unless You open the can of worms called "Business" income.
• Jacques
  • Any ideas on how to benefit from current strong rand i.e. which ETFs are good options to take some cash offshore?

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.

Short zombie stocks

Simon Shares

• Did you sell your dogs?
• Keith McLachlan commented on Conduit Capital and it's not all wannabe Berkshire Hathaway.
• Second session in the first Trading Master Class with IG was on Tuesday. We're looking at a CFD trading plan and this session went live on the IG platform looking for stocks and three buys popped up; Barclays Africa Group (JSE code: BGA), PSG & Woolies (JSE code: WHL).
• The Fat Wallet Show goes back to bonds because last time we started complicated which is not what Fat Wallets are about.
• Small is the new big says Trader Petri and we agree 100%.

Short the zombie stocks

We Get Mail

• Johan
  • I would appreciate it very much if you could tell me where one would declare CFD trading outcomes on the SARS form. Have just spent 45 minutes on the phone to SARS help without making any progress.
• Sarah
  • What about Bitcoin as an investment?
  • Pipcoin is a scam.

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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.