- Anthony Clark on small caps
- Purity baby powder products were recalled by TigerBrands (JSE code: TBS) due to traces of asbestos.
- PSG (JSE code: PSG) unbundling effective at close on Tuesday. Holders at the close will receive
- 3.87 PSG Konsult (JSE code: KST)
- 1.82 Curro (JSE code: COH)
- 0.12 Kaap Agri (JSE code: KAL)
- 1.04 CA Sales (JSE code: CAA)
- 1.02 Stadio (JSE code: SDO)
The bear and bull case for investing in Shoprite
Shoprite* (JSE code: SHP) results saw the stock down 7.5%. Let's dig into what the market maybe didn't like.
- Only 10% earnings growth?
- With one week less and the 2021 riots in the numbers, decent albeit not knock the lights out.
- Only 600c dividend for the full year?
- Very much in line with the average.
- Expensive on PE of over 20x?
- Always is, but mid-range is about 15% lower. So yes, maybe a little more than usual?
- Opening 275 new stores?
- Cost and are they cannibalising their other stores?
- RSA operating margin 6.8%?
- The top end of the long-term range, worries that it may move lower?
But Shoprite remains one of the best food retailers globally and a core holding in my portfolio. I have bids in the market at around R170 which would put it on a PE closer to the mid-range from the last decade.
Sixty60 grew 150% and remains the absolute market leader in the grocery delivery space.
Checkers Xtra Savings has 24.7m members and it turning into a bank account.
* I hold ungeared positions.
- Sold my Murray & Roberts (JSE code: MUR)