PDSNET ARTICLES

Excessive Bullishness

On Friday last week, the S&P500 index posted yet another new record closing high, but this time just one point higher than the previous day at 5088. This means that the index, which measures the progress of the 500 largest companies on Wall Street, has been climbing without a significant correction for nearly four months. Consider the chart:

Lessons from Transcap

As a private investor it is very important that you study what has happened in the past and learn from it. The progress of Transaction Capital (TCP) has provided us with an excellent opportunity to examine and learn from a complete cycle in an institutional favourite share. We can examine the entire cycle and see how to profit from it. In this regard, it is important

Sasol

Sasol is a company originally established in September 1950 by the National Party, to counter the possibility of petrochemical sanctions against the old South Africa. Essentially, Sasol used South Africa’s enormous coal reserves to generate about one third of its fuel requirements. Subsequently, Sasol became involved in the chemical industry which now accounts for about

4Sight

The world has, in the last twenty years, entered what has been characterised as the 4th Industrial Revolution (4IR). It has been described as “... the biggest structural change of the past 250 years — a transformation of scale, scope and complexity unlike anything humankind has experienced before.” In simpler terms, 4IR refers to the digital convergence of

The Great Bull Resumes

On the 12th of June 2023, we published an article, headed "Bull Trend?". In that article we suggested that, after a 25% correction, the great bull market on the S&P500 which began in March 2009 was still intact and would, in time break to a new all-time record high, above the high

CA Sales

In recent years, the JSE has not seen many high-quality, exciting companies listing on the exchange. One of those few is CA Sales Holdings (CAA), which offered both fund managers and private investors an excellent opportunity to make a significant capital gain last year.

CAA is a company which has grown

Two Elections and Two Wars

As the New Year begins, private investors should consider the most important factors which are likely to impact on the prices of shares and the profits of companies listed on the JSE. Some of these factors are local, like the general election which is expected to take place sometime in May, and some are international like the oil price, the

Fundamental vs Technical

When you decide to buy a share, you are immediately in the business of forecasting. You are predicting that the share price will go up. Because, if you thought it was going to go down, you would not buy it. But, of course, the person that you buy it from makes exactly the opposite prediction – they believe it will go down – that is why they are selling it.

S&P500 Market Action

On the 20th November 2023, we tweeted that the S&P500 index, after its sharp rise of the previous sixteen trading days, would probably experience some sort of correction. That correction did, in fact, materialise, but the strength of the upward trend and the bullish sentiment present in the market reduced it substantially and it has

Near Equities

An equity or ordinary share is one which shares in the risk and returns of a company. Most of the shares listed on the JSE are ordinary shares which rise and fall in price as the company’s potential profits (and hence the prospect for dividends) fluctuate. This is compared to other types of investments like redeemable