ARTICLES

PDSNET ARTICLES - OCTOBER 2017

The Rand’s Weakening Trend

In the middle of July, we published an article about the new weakening trend of the rand and urged you to consider buying rand hedge [glossary_exclude]shares[/glossary_exclude]. We also talked about the rand’s new weakening trend in the October Confidential Report

Our L4L Mistake

29^th May 2017 we published an article (“Long 4 Life”) in which we extolled the virtues of a new listing – Long 4 Life (L4L). The important characteristic of this share was that it was started and championed by the famous entrepreneur, Brian Joffe (of Bidvest fame). Using his name, Mr Joffe raised R2,3 billion from eager investors anxious to participate

Premfish Plays the PE Game

One of the great advantages of listing on the JSE (or any market) is that it re-rates a company’s shares from their pre-listing level as a private company (which is usually between 3 and 5 times their most recent after-tax earnings). Most listed companies can look to trade on the JSE at somewhere between 10 and 15 times after-tax earnings – depending on their track-record and the type of business they are in (service companies

Black Monday Anniversary

Today (19^th October 2017) is the thirtieth anniversary of “Black Monday” – the day on which the Dow Jones industrial [glossary_exclude]index[/glossary_exclude] fell 23% in a single day – its single largest one-day fall in history. This massive fall dwarfed even the previous Black Monday which was 28^th October 1929 – which signalled the start of the Great Depression. On that day the Dow only fell

Stadio’s Shooting Star

The ancient Japanese charting method known as “candlestick charting” in the West predates Charles Dow (the “father” of technical analysis) by several centuries. It contains some very simple and useful wisdoms which private investors would be well-advised to follow. The recent listing of Stadio on the JSE gives an excellent example of what the Japanese call a “shooting star”. This share came to the

Vodacom

Vodacom is the largest supplier of cell phone connections in South Africa with 39 million local customers. It also has over 30 million customers outside South Africa. In the June 2017 quarter the company added 2,5 million new customers – 2,3 million of them in South Africa. Vodacom is owned about 65% by Vodaphone. By anyone’s standards, this company is a blue chip. Most of its income is in the form of annuity income and