ARTICLES

The Prosus Winner

It has been well said that no matter what happens in the world or in South Africa, there is always a way to make money from it in the share market - it is just a matter of seeing where the opportunity lies.

The advent of the coronavirus in late January this year, while it was a world-wide human and economic catastrophe, presented just such an opportunity. The contagion forced a sea-change in behaviour patterns world-wide requiring people to stay at home for an extended period of time. In this process, companies and individuals have been learning to work and play from their homes.

Some businesses like the airlines industry, tourism and restaurants have been virtually destroyed by COVID19, but others like online gaming have flourished.

On 29^th January 2020, we published an article about the impact of the coronavirus on world markets. In that article we said, "In our view, this correction has the potential to become a buying opportunity - especially for shares like Prosus have taken a sharp fall". We suggested that you should watch Prosus and the S&P500 index to find the best buying opportunity. Since then (29^th January 2020) Prosus has risen by 50% in under four months. Consider the chart:

Prosus, through its ownership of 31% of the social networking and gaming giant, Tencent, has benefited from a massive increase in online gaming. National lockdowns all over the world have created a huge market for internet-based home entertainment and social media. Among its various internet-based offerings, Prosus has a share in the blockbuster game, Fortnite, which now has more than 350 million users world-wide. And that is just one of its many online products.

After the virus has run its course, we believe that consumers will remain wary of going out to restaurants and entertainment where large groups are gathered into confined spaces - like the theatre or stadium sports events. We see a semi-permanent shift towards online gaming and other online activities. This means that a share like Prosus should continue to benefit in the future.

Prosus also has the significant advantage of being a rand-hedge which for South African private investors is a major consideration.  

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PDSNET ARTICLES - MAY 2020

Afrimat Opportunity

Afrimat (AFT) is a share that we have liked for a long time. In May last year we wrote an article in which we did a point-and-figure horizontal count on its upside breakout from a lengthy period of sideways movement. Unfortunately, the coronavirus made a nonsense of our predictions, but the underlying fundamentals of this company have only improved since then and it now represents one of the

The Prosus Winner

It has been well said that no matter what happens in the world or in South Africa, there is always a way to make money from it in the share market - it is just a matter of seeing where the opportunity lies.
The advent of the coronavirus in late January this year, while it was a world-wide human and economic catastrophe, presented just such an opportunity. The contagion forced a sea-change in behaviour patterns world-wide

R186 Long Bond

Sometimes things happen in the markets which cause you to ask the question,
"What can they see that I can't see?"
The progress of the yield on South Africa's long bonds is like that.
South Africa has just been downgraded by both Moodys and Standard & Poors. We are officially at junk status - so you would think that our government debt instruments would be out of favour among international

Imperial Logistics

Imperial (IPL) is a large international logistics company with 27 000 employees operating in 32 countries mainly in Africa and Europe. In is involved in transport, warehousing and international freight management. It is the largest logistics supplier in South Africa. The company is involved in five key areas - automotive, chemicals, consumer, healthcare and industrial.
The company recently split off and separately listed