All about investing on the JSE with Simon Brown. Every Thursday.
Just two stocks (#467)
Simon Shares Coronation* (JSE code: CML) grows assets, fees and dividends. PPC (JSE code: PPC) results look good. Purple Group* (JSE code: PPE) price action looking weak. PGMs fading again. Hospital group stocks; Life Healthcare JSE code: LHC) and Netcare (JSE code: NTC) both had fair results as they get better at managing the pandemic. Shoprite* (JSE code: SHP) launched their banking account, under pinned by Grindrod Bank (JSE code: GND) who also stand to benefit from the MTBPS last week whereby the minister said they'd allow independent traffic on the Transnet rail network by end of 2022. Turkish lira collapse. This is what happens when your central bank is not independent. Two stocks that made a real difference to my portfolio over the last two decades, Capitec* (JSE code: CPI) and Shoprite* (JSE code: SHP). * I hold ungeared positions.
Twenty years of food retailers on the #JSE pic.twitter.com/BDKeOPU11t
— Simon Brown (@SimonPB) November 23, 2021
Twenty years of local banks .. only really one bank in it as the other 4 battle along the bottom as Capitec does 46% CAGR over the two decades ..#JSE pic.twitter.com/yMx0NSDYrV
— Simon Brown (@SimonPB) November 24, 2021
Don't short the break higher (#469)
Simon Shares Iron ore below US$100. Kumba (JSE code: KIO) halved since July highs. And still falling. But Q3 sales were at US$180 / tonne and even at current lows likely they get US$150 / tonne for the second half. Mid-year cost per tonne was US$26 and sale price US$165 / tonne. So the share is pricing in horror stories which likely aren't true fr the full year ending December. BUT next year will be different and you don't try to catch falling knives, wait for a confirmed reversal. Woolies* (JSE code: WHL) trading update, really weak. Shoprite* (JSE code: SHP) trading update, really strong. Strong PPC (JSE code: PPC) update. Local inflation came in at 5%, the fourth month we're below US inflation and likely we'll see no change at MPC on Thursday. * I hold ungeared positions.
[caption id="attachment_31691" align="aligncenter" width="888"] Top40 daily[/caption]
Upcoming events; 18 November ~ JSE Power Hour: Opportunities in local and global property 25 November ~ The inflation threat, is it becoming structural? 02 December ~ JSE Power Hour: Position your portfolio for 2022 09 December ~ Portfolio construction with Keith McLachlan
Market in review 15 November 2021
/ US inflation, 6.2%. Core inflation highest since 1991.
/ Johnson & Johnson announced plans to split its company into two, separating its consumer health division from its pharmaceutical and healthcare businesses.
/ Elon Musk selling Tesla shares, some planned n September. Rest thanks to the Twitter poll.
/ Singles day in China, muted (+8.5%) but still huge, Alibaba $84.5billion
/ Tencent results. Slowing in all areas. Common prosperity is visible in the results.
/ MTBPS, not much happening - as expected.
/ Vodacom buying Vodafone Egypt, nice deal and adds a strong growth region.
/ Purple Group results, really top class and much better than I expected. 737k funded accounts.
/ Sappi results, doing well as dissolving pulp prices boom. But energy costs hurting.
/ Raubex results strong with a really good pipeline and well positioned for infrastructure
/ Northam scopes Implats and buys 33% of RBPlats
Stellar Purple Results (#468)
Simon Shares Iron ore below US$100. Kumba (JSE code: KIO) halved since July highs. Tencent (Hong Kong code: 700) results. Northam (JSE code: NPH) buys stake in RBPlats (JSE code: RBP). Telkom (JSE code: TKG) results. Purple Group* (JSE code: PPE) results.
[caption id="attachment_31661" align="aligncenter" width="888"] Purple Group daily chart[/caption]
* I hold ungeared positions.
Market in review 08 November 2021
/ US tapering begins
/ Strong US jobs data
/ US passes $1trillion infrastructure bill
/ Bank of England leaves rates unchanged
/ Strong Pfizer results
/ Elon Musk asks Twitter if he should sell 10% of his Tesla shares, and pay tax
/ Mini budget this week
/ Renergen reserves
/ Dis-Chem results
/ MTN update
/ Purple Group update
/ Petrol increase
Renergen helium reserves soar (#467)
Simon Shares Federal Reserve FOMC press conference Wednesday evening after a two-day meeting. Avis (NYSE code: CAR) up 50x from March 2020 lows after results. Pfizer (NYSE code: PFE) results. Ascendis (JSE code: ASC) shareholder activists now control 30% of the votes. Renergen* (JSE code: REN) announce a six-fold increase in helium reserves. Still need to raise UAS$800m or R12.3billion to get phase 2 up and running. [caption id="attachment_31627" align="aligncenter" width="888"] Renergen weekly chart[/caption] US$8.5billion from France, Germany, the UK and the US governments, as well as the EU, to support a just transition to a low carbon economy.
* I hold ungeared positions.
Straight to the point and insightful
Insightful! My go to with the Fat Wallet Show
Great content. Poor delivery
Your content is always interesting and I would love to listen more to this show however I find it unlistenable. Dineo has a very good voice and knows her stuff but umm says umm too many umms. Every third word is an umm. Umm this makes it umm impossible to umm listen to 😕.
Change Dineo out
Hi Simon, please swap Dineo out for someone else. She is very difficult to listen to.