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Go where the money is

The Fini15 (JSE code: STXFIN*) is the only green index so far in 2022 and the strongest bank YTD? Absa (JSE code: ABG).

Simon takes us through the journey of finding the strongest sectors and then the strongest shares to find a trade where the money is.

Simon Shares

• Niche JSE listed property stocks, there are a bunch of them and they're mostly looking good.
• Famous Brands (JSE code: FBR) results are back at pre-pandemic levels.
• MTBPS
• Buy triggers on Nasdaq and S&P500

My lazy system has triggered buys on both S&P500 and Nasdaq. A close above last night's close and I'll be long pic.twitter.com/8HAisLdPZr

— Simon Brown (@SimonPB) October 26, 2022

* I hold ungeared positions.

Murray & Roberts (JSE code: MUR) horror update.

"working capital requirements are especially acute"

"financial results for the six months period ending 31 December 2022, to be at least 100% down"

This is not South Africa at all, it's Australia and the US. We've seen Wilson Bayly (JSE code: WBO) walk away from their Australian operations.

Low margins and bankers not keen on bonding projects are going to crunch this industry globally. I would suggest Aveng (JSE code: AEG) is not immune either.

The only time this industry really made money was in the run-up to the world cup, and they were colluding to get operating margins of +5%. So really this is a bust industry.

That all said, decent results from Calgro M3 (JSE code: CGR) while we wait for Balwin (JSE code: BWN).

Simon Shares

• MTN (JSE code: MTN) ditches Telkom (JSE code: TKG) over their Rain talks.
• Pick n Pay (JSE code: PIK) results. Not bad but the market hated selling the stock down 9.3%. Is the issue valuation? Forward PE is ±29c vs. Shoprite* (JSE code: SHP) is on ±21x.
• Combined Motor Holdings* (JSE code: CMH) has great results driven by car rentals surging. But it going to be tough going from here.
• UK inflation returns to a 40-year high of 10.1%.