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Graphs talk – Nedbank

Nedbank is the fifth largest bank in South Africa according to market capitalization (R44bn). Their financial results for the period ending December 2019 reported the following: headline earnings down 7.3%, revenue up 2.5% and net asset value per share increased by 3.7%. The stochastic indicator is oversold which makes the probability for a bounce to higher levels more likely. The share is caught within falling wedge between line A (R91-09) and line B. The optimism of the formation will be…

Graphs talk – NEWUSD

This ETF gives you exposure to the Rand against the American dollar. A profit in this ETF is when the Rand weakens against the dollar. The stochastic indicator confirms the oversold position of the Rand, which makes the probability for more weakness more likely. This ETF was caught within a symmetrical triangle and above line B (R18-48) the symmetrical triangle will confirm a bullish pennant, when line B changes into a support. Which implies that the weakness in the Rand…

Graphs talk – Shoprite 7 May 2020

Shoprite is the largest supermarket retailer on the African continent. Their latest quarterly update for the period ending in September 2019 reported the following: turnover increased by 7.3%, Supermarkets RSA grew sales by 10.3% during the quarter. The Group’s other operating segments, which include the OK Franchise, Computicket, MediRite pharmacies and Checkers Food Services, reported a 6.4% increase in sales. The OK Franchise division grew sales by 8.6%. The stochastic indicator confirms the oversold situation of the share and the…

Position size for CFD’s

We keep on talking about position size but what does it actually mean? The size of your position is nothing other than the number of contracts you trade on CFD’s or the number of shares you buy on equities. In other words, the exposure you have to one instrument in a trade. A risk strategy is key in trading or investing if you don’t want to wipe your account. When we talk about investing we mean the actual shares/equity you…

Two healthy businesses

Literally. Both Clicks Group and Dis-Chem has shown exponential good growth since listing on the JSE. For Clicks the big year was 1996 and for Dis-Chem it was in November 2016. Clicks Group consists of several market-leading retail brands, namely GNC, The Body Shop, Claire’s, Musica and Clicks. It has more than 870 stores across southern Africa and has the largest retail pharmacy chain in the region with over 545 in-store pharmacies. United Pharmaceutical Distributors (UPD) is South Africa’s leading…

Retirement annuities: the Receiver and the sting in the tail.

Financial planners love to recommend Retirement Annuities (RAs) as the Holy Grail for a secure and comfortable retirement. And while they are quite correct regarding the positive aspects of RAs, I have found that they tend to embroider these positive traits and just lightly mention the possible negative aspects of RAs. In this piece I am going to just do the opposite. We’ll have a quick look at the positive qualities of RAs, the role of the Receiver, but then…

JSE

JSE is no longer the only exchange in South Africa. Their latest financial results for the 6 months ending in June 2018 reported a 7% increase in operating profits. The share is nicely overbought and the stochastic indicator has broken downwards which implies that we can see more downside first. The break of the 3 day moving average (green line) through the 8 day moving average (red line) downwards will confirm the short term pessimism. A spinning candle (uncertainty) confirms…

The Spar Group

Over time and through many mergers and takeovers, today the SPAR Group Ltd operates 6 distribution centres and 1 “Build-It” distribution centre, supplying goods and services to over 1 000 SPAR stores across Southern Africa. SPAR International is present in 48 countries with 242 distribution centres and serving 13.5 million customers per day. Their latest financial results for the six months ending March 2018 reported a 5.3% increase in revenue and a 13.8% increase in headline earnings per share. ·        …

Quilter Wealth Managers

Quilter asset managers has been listed after the unbundling of the wealth division of Old Mutual.  Managing over £100 billion of investments on behalf of over 900,000 customers, they operate in one of the largest wealth markets in the world. Their financial results for the period ending June 2018 reported a 2% increase in assets under management. Profit before tax increased by 16%. ·         The share is nicely oversold on the stochastic indicator which makes the probability of a bounce…

Gold fields

Goldfields announced at the end of August that they are going to retrench another 1 560 people at their South Deep mine. South Deep employs 3 614 full-time employees and 1 940 contractors. South Deep is their only SA mine left, they bought this mine in 2006 and ever since then the mine hasn’t been profitable and has eaten R32 billion so far. Their latest financial results for the six months ending in June 2018 reported a strong financial position,…