Simon Shares

• Coronation* (JSE code: CML) trading update, aside from the massive SARS judgement (and hence no dividend), not bad. But not yet time for buying as sellers persist.
• Purple Group* (JSE code: PPE) results saw a loss for the six months ending February 2022. But lots of extra one off expenses (expected for a growth business) and a tough market and they still have excellent growth potential. I continue to hold.

* I hold ungeared positions.

Simon Brown

Simon Shares

• Local CPI 7.1% for March up from 7.0% in February. Expected was 6.9%. Core inflation 5.2% vs expectations of 5.1%.
  • Rates higher for longer.
• Reviewing Minister Pravin Gordhan's portfolio. Too many stocks, why not more ETFs?
• Platinum at all-time highs in rands. This as it trades at more than 50% off the all-time US$ highs from 2008.
• Still long all my index trades.

Time to sell Capitec* (JSE code: CPI) as results show them as ex-growth?

• Return in Equity (RoE) 26%
• Cost-to-income (CTI) 39%.
• Impairments +80% and worrying the market

But my worry is it is priced +2x valuations of the other four big banks and it is now largely a mature bank. Sure low cost base, but I do not think it deserves that high valuation so am likely exiting after holding since 2009.

* I hold ungeared positions.

Simon Shares

• US inflation for March at 5.0%, better then expected and initial response form markets was to jump higher. Big wait now is for first week of May and the next FOMC rate decision.

Current open trading positions, long everything

My 7/21 trading system has me long all the indices I trade as below;

• Nasdaq 22Mar23 @ 12,740
• S&P500 21Mar23 @ 4,056
• Euro Stoxx 50 03Apr23 @ 4,317
• ASX200 05Apr23 @ 7,240
• FTSE100 11Apr23 @ 7,793

Simon Shares

• Combined Motor Holdings* (JSE code: CMH) strong trading update puts the stock on a PE of under 5x and a dividend yield of ±15%. A great well run company, but what will get the price moving higher or do we just live off dividends?

* I hold ungeared positions.

Strong first quarter returns Q1 2023 return[/caption]

Top40 stocks, top and bottom performers pic.twitter.com/zwZlJkRpwX

— Simon Brown (@SimonPB) April 3, 2023