From my research notes this morning. For more research insights, including trade ideas, get in touch today. Tuesday 14-November-2023, 06h30 JSE Tech vs Top 40 Index. The chart below is the JSE Technology Sector relative to the JSE Top 40 Index and as well as the ratio's distance vs it's 75-Day EMA and 200-Day SMA. Here, I highlight the technology (NPN, PRX)...
Zeda is a car rental company unbundled and spun out of Barloworld with a fleet of 250 000 vehicles and 14 dealerships around South Africa. It holds the licence for the Avis brand in South Africa. The company is 55 years old and listed on the JSE on 13th December 2022, with Ramasela Ganda as its CEO. In its results for the six months to 31st March 2023 the company...
Vodacom (VOD) is South Africa's largest airtime and data provider for cell phones. It is a subsidiary of the international company Vodaphone. Its competitors are MTN, Cell-C and Telkom. The cell phone industry has been hammered by a steady decline in voice revenue which has to some extent been compensated by a sharp rise in data usage. The disadvantage which...
Shoprite (SHP) is the largest grocery retailer and consumer goods company in Africa. Intense price competition has prevented supermarkets from passing on price increases to consumers. The share price was hammered down from a high of R275 in March 2018 to levels around R100 in July 2020 but has since recovered strongly. We expect it to benefit directly from any...
Sasol (SOL) is a massive international chemicals and energy company which has its roots in the oil-from-coal technology developed during the apartheid era in South Africa. About 50% of the company's profits are directly linked to the oil price. It has two main growth areas - its 50% stake in an ethane cracker plant in Louisiana, America, known as "Lake Charles...
Raubex (RBX) is a construction company that was started in 1974 and listed on the JSE in 2007. The company has three divisions in construction, materials, and infrastructure. Recently, with the dearth of work in road-building, especially from Sanral (who have halved the value of the tenders which they issue), the company has branched out into solar and wind energy...
Premier is a food producer which was spun out of Brait (BAT) through an initial public offer (IPO) and separately listed on 24th March 2023 which raised R3,6bn at a share price of 5382c per share. Brait retained 47,1% of Premier. Premier has managed to mitigate the impact of loadshedding on its operations, the costs of which were not a material impact on its...
Harmony (HAR) is probably South Africa's most marginal gold mine. A marginal gold mine is one which has a cost of extraction which is relatively close to the current gold price. This means that small movements in the rand price of gold can have a radical impact on the mine, pushing it from profit to loss and back to profit very quickly. The result tends to be a...
Allied Electronics Corp, or Altron (AEL), is an information and communications technology company which was started by Bill Venter in 1965. It has recently been re-focusing on its core business and has sold its 80% stake in Powertech and its 100% subsidiary, Altech UEC (a developer of set-top boxes). Powertech was also sold to a BEE consortium. Altron is in the...
Alexander Forbes (AFH) is a financial services company offering asset management, insurance, healthcare, retirement, consulting, and wealth management to both corporate and private clients. It has a presence in 5 countries in Africa outside South Africa - Namibia, Nigeria, Botswana, Uganda, and Zambia. In the past, the share has fallen from its high of just over...
Purple Group Shares Price Tank -10% further to the down-side. The Charts show some more pain to be had. I might be wrong, but the CEO did increase his Salary? Will need to find out if this is correct. Suspicious purchases seen. I am disappointed on this Investments performance. However, by selling now will destroy your Capital. Tough decision. Hind Sight that we...
OMU has been in an ascending channel. Price has closed above the 200-day SMA, still favouring the bulls. Direction: Buy Target: R12.92 Stop loss: R11.51 Risk/Reward: 1.5 Traders/Investors should always make their own analysis, the idea posted is just a guideline. Risk management is always your number one priority.
SOL has been in a channel since March 2023 with the upper bound at R265.71 and the lower bound at R220.90. It has currently tested the lower bound. Does it still have legs for testing the upper bound? Traders should be cautious because it is still trading below the 200-day SMA. Direction: Buy Target: R257.80 Stop loss: R216.09 Risk/Reward: 2 Traders/Investors...
JSE Relative Sector Ratings as of Friday's close. The readings are subject to change. For more research insights, get in touch today.
I didn't have the time to update you on my TRU short/sell idea however I am doing it now. The share reached the full target of 7420c (from an entry of 8189c). This represented a 9.3% ungeared gain. The original idea was published here on 06 November and is attached to this post. For more research insights, including trade ideas, get in touch with me today.
East Plats (EPS) is a mining exploration and development company engaged in the platinum group metals (PGM) and chrome markets in South Africa. The company is listed on the Toronto Stock Exchange (TSX) and the JSE. The company has three projects - the Crocodile mine, which ceased operating in 2012 and is under care and maintenance, Sound Mine Solutions engaged to...
ISA Holdings (ISA) is a small Alt-X listed IT company offering network, internet, and information security in sub-Saharan Africa. The company claims to employ some of the leading IT security specialists and to have the tools and experience to offer effective information security solutions. In its results for the six months to 31st August 2023 the company reported...
Quantum (QFH) is in the chicken business. It has four divisions - Animal feeds, eggs and layers, broilers and an African division where it sells related products. Quantum was obviously badly impacted by the drought in Southern Africa, but since that abated and the price of animal feeds came down, it has benefited from the much higher prices of eggs and the lower...