Simon Shares

• Famous Brands* (JSE code: FBR) results were decent enough with the UK acquisition only adding a small bit to the bottom line. I have been buying in the low R130's.
• An article on Moneyweb that strips out the top five expensive and heavy weighted stocks in the Top40 shows a historic PE of around 12.5x. In other words offering value and adding to my bullish thesis. 
• Spar (JSE code: SPP) results show an operating margin squeeze down from 3% a year ago to 2.5% in these results. In part the offshore acquisitions but not a great sign.
• Sygnia (JSE code: SYG) results were flat. I expected at least some growth in HEPS but it was spent on new staff (via an acquisition) and marketing. We are still waiting for the details of the rights issue to fund the DB x-trackers purchase. For now I like the company but still think it is expensive.
• Property ETFs for dividends and the tax on the dividends explained.
• The JSE Power Hour video on investing while junk.
• Upcoming events;
  
  • JSE Power Hour: Ways that management can mislead investors

* I hold ungeared positions.

When the best time to go offshore?

All the time. We can worry about the Rand and we can worry about valuations, but we'll never get it right. I buy locally listed offshore ETFs every month (buying DBXWD) and move money into USD every six months on schedule.

We Get Mail

• Everybody
  • Suddenly Bitcoin ramps higher and everybody wants to know if they should buy it? Or maybe Ethereum or heck why not Dogecoin. I covered Bitcoin in a recent episode, more importantly is we only get excited when the price runs? 
• John
  • Please can you explain some of the JSE specific rules on market cap indexing - i.e. how/why does AB Inbev get removed from the Top 40, will/how can it ever be included?

• Subscriber to our feed here
• Subscribe or review us in iTunes.

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.

Unconscious Competence

Maslow's theory of how we progress and ultimately become Unconscious Competent traders.

• Unconscious Incompetence
• Conscious Incompetence
• Conscious Competence
• Unconscious Competence

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

• Blitz round of result comments;
  • Richemont* (JSE code: CFR)
  • Calgro M3* (JSE code: CGR)
  • Lonmin (JSE code: LON)
  • Astral (JSE code: ARL)
  • Vodacom (JSE code: VOD)
  • Balwin (JSE code: BWN)

* I hold ungeared positions.

Upcoming events;

• CoreShares investment disciplines & transactional website
• JSE Power Hour: Investing while junk
• JSE Power Hour: Ways that management can mislead investors

CoreShares transactional website and some investing core principles

We're running a promo with CoreShares this month including an event in Durban next Wednesday 24 May at the Riverside hotel (email info@coreshares.co.za for info or to book).

This week Simon chats to Gareth Stobie about their new website that enables transacting in their ETFs and their three investment disciplines when saving for or already in retirement.

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

• Shoprite* (JSE code: SHP) announced that former CEO Basson would be exercising a put option to company forcing it to buy back some R1.8billion of Shoprite shares. No problem, except did we know about this put structure? They say it was part of his December 2003 employment contract, but the annual reports of 2003/4/5 make no mention of it?
• Adcorp (JSE code: ADR), horror update. They are really struggling.
• Metrofile* (JSE code: MFL). Everybody wants to know if I am selling, why would I be selling? Just because the price is down?
• Rational Intuitive, what type of investor are you? 

* I hold ungeared positions.

Upcoming events;

• JSE Power Hour: Investing while junk
• JSE Power Hour: Ways that management can mislead investors

How to trust your trading system

Time and discipline is the best way to trust. My lazy system is now some 12 years old, so I know to trust it. But how do you get to trust a new system?

I like the approach suggested by Mark Douglas in his book, Trading in the Zone.

• Back test (eye ball) at least twenty past trades.
• Paper trade twenty at least trades.
• Do twenty live trades with small capital amount.

Now you have a system with sixty 'trades' and you know if it works and can trust it.

We Get Mail

Andy

• NFEMOM*, I know you hold it, was just interested in your thoughts on the costs. Expensive, no? Annualised TER 0.37% Transaction Cost 1.20% Effective Annual Cost (EAC) 1.57%.

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

• You know Apple results were truly average when even the fan boys say it was just okay. But that pile of cash, over a quarter trillion US$!
• MTN update looks decent for South Africa and Nigeria. Still tough in both but at least revenue is improving.
• Locally April vehicle sales and PMI data both fell off a cliff. But with Easter in March last year we're not comparing apples with apples, so May will give us a clearer picture.
• Upcoming events;
  • JSE Power Hour: Investing while junk
  • JSE Power Hour: Ways that management can mislead investors

How much cash do we need to start?

Trading or investing requires capital. As an investor one can start very small with just a couple hundred rand, but a trader requires a lot more in order to properly manage risk. So we look at the different options (CFDs, FX, ALSI and ALMI) and how much is required to start.

We Get Mail

• Jing-Woei
  • In a recent Finweek (30th March) magazine issue, I read about your view on the NFEMOM fund. I was wondering if you have also had a look at the SATRIX Momentum Index Fund?
• Terence
  • 2% difference between ASHT40 and SATRIX40 closing prices, how come?

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.