Jsedirect With Simon Brown

A letter for when you're dead Simon Shares Still on holiday. Up coming events; IG Trading Master Class: Tuesday at 6pm - Trend lines, break outs and Turtle trading. JSE Power Hour: Thursday at 5.30pm - Offshore investing. The how. A letter for when you're dead When we die hopefully we have a will that'll deal with our estate. But if we've been the one managing investments what happens to them? Sure they go to your heirs, but do they know what to do with them, the strategy and plans? We ned to write a letter to those surviving us explaining it all. Does you partner / family have a full understanding of how you've put together your investments and finances? What do you own and with who? What's the strategy? Keep each strategy in a separate account. Who can manage your investment portfolio now that you're dead? What to watch out for. How to change / adapt the strategy. Who to appoint to manage this. Where is the emergency fund and how is it accessed? Your speculative / derivative positions need to be

Simon Shares Pick n Pay (JSE code: PIK) results. Everybody loves them but I am not wowed. Operating margin of 1.5% up from 1.3% is tiny. By comparison Shoprite (JSE code: SHP) is 5.6% and Spar (JSE code: SPP) is 2.8%. Like for like constant currency turnover grew 3.8% against selling price inflation of 5.5%, so still losing market share? New offshore ETFs from CoreShares. A S&P500 tracker and a Global Property fund. I have applied for the later. Up coming events; JSE Power Hour: 20th at 5.30pm - New offshore ETFs from CoreShares. Keith McLachlan fund manager at Alpha Wealth Chatting Calgro M3 results, memorial parks, new CEO and their residential Reit. We also touch on the Dischem listing and Cell C results that we got a first look at due to the Blue Label 45% stake in the business. 123 Download the audio file here or subscribe to our feed here or sign up for email alerts as a new show goes live or subscribe in iTunes. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an inde

Hello junk Simon Shares Fees feedback. Seems some active managers are getting serious about fees. But still not 100% in favour of client who pays the fees and some have done odd things. But nobody came back and said my ideas of last week were truly horrid, nor eve slightly horrid. Just last week I was commenting that my odds of a downgrade to junk were retreating. Still above 50%, but only just. Then Gordhan arrest and odds increase again, I think chance of a downgrade to junk is now around 61%. Important dates; 26 October - Mid Term Budget Policy Statement (MTBPS) 2 November - Gordhan to appear in court on fraud charges 24 November MPC rate decision 2 December - SP announce SA credit rating 6 December - GDP for Q3 2016 Calgro M3 (JSE code: CGR) disappointed, I am not selling but waiting for results to see details. Taste Holdings (JSE code: TAS) results have lots of moving parts, but they're burning cash at a rapid rate and need to get profitable otherwise they run out. Potentially a good business, but fi

Still hating active fees Simon Shares With SABMiller exiting the JSE new weightings in the indices with Naspers (JSE code: NPN) now 19% in the Top40 and 31% in the Indi25. Rating downgrade to junk, still on the cards? Deutsche Bank and the deal on their ETFs and ETNs. Live followup reversal patterns video is online. Two events next week; Trading Master Class on Tuesday covering binary options. JSE Power Hour on Thursday on listed property. Still hating active fees Is the benchmark being used a total return index (TRI) that includes dividends? If not the active manager wins because they get dividends that immediately put them ahead of the benchmark by a few percent. Are performance fees paid back when the fund manager under performs? If not the manager and clients are not aligned as performance is paid when they do well but not returned when they do poorly. We Get Mail George I have a CFD acc on the JSE, it has buy and sell options, but I want to short shares when they go down, must I buy it and then

Simon Shares Thursday 29 September is the last day for SABMiller (JSE code: SAB). Shareholders approved the take over and it will be suspended and delisted from close on 29th. It has been listed on the JSE since 1897 Index changes; IMP into Top40, AVI into Indi25 & FFA/B into Findi. There is a chart floating around of Lehman Brothers just before they hit the wall and one of Deutsche Bank over laid on each other. Nice to look at but in no way telling us anything worth being told. Deutsche Bank is the largest German bank, fourth largest European bank, and 11th largest bank in the world with assets of over $1.9 trillion – equal to half the size of the German economy. (source Sparkfin.com) Remgro (JSE code: REM) is doing another rights issue at R192.50, a decent discount to the current price of some R240. That said the book value of Remgro in the most recent results was R153.17 (intrinsic value was R306.44). MTN, more woes in Nigerian. I remain a happy ex-shareholder. What happens to bonds and bond ETFs

Reviewing small cap results with Keith McLachlan Reviewing small cap results with Keith McLachlan Simon Shares Wells Fargo is the sort of stock that if I owned it, I would sell it as management totally failed and refuse to accept any blame. There is a theory that equal weight ETFs have higher costs because they have to rebalance every stock every quarter. But checking the STXIND over the last four quarters. Twice every stock changed weight and twice only two stocks did not change weightings. Harmony (JSE code: HAR) buys the half of the Hidden Valley mine in Papua New Guinea for US$1! PPC (JSE code: PPC) rights offer was 92% taken up but with excess allocation requests of another 509%. Some serious big hitters thinking this a great deal. Sasfin (JSE code: SFN) nonperforming loans more than doubled. They operate in the small-and medium-sized enterprises so it is a telling number. The economy is seriously struggling and while I have seen some economists upgrading GDP expectations for 2016, none have us at

Reviewing results Simon Shares Feedback on making sense of SENS AVI (JSE code: AVI) results show good numbers in a tough market. People tend to look to Pioneer (JSE code: PFG) or TigerBrands (JSE code: TBS) but this is the real gem in the space with a dividend yield of 4%. Holdsport (JSE code: HSP) trading update shows increased comparable sales growth, but after inflation they're going backwards. I never been a fan of this business albeit the share is up some 100% in the last five years, around 15% a year which is nice, but average? But then add a chunky dividend that currently yields 5%, can they hold the dividend or even increase it? I suspect they can but I still not interested. Clover (JSE code: CLR) were good considering the tough times with drought yet they had an over supply of milk? I used to own this stock but they weren't growing and expanding as I had expected so I exited. Sasol (JSE code: SOL) results came in as expected albeit with help from translations gains (FX moving in their favour) and a

Simon Shares Local GDP came in better then expected and importantly positive, so no technical recession. Manufacturing and mining were the strong sectors but we need a lot more very strong quarters to get out of the bad spot we find ourselves in and a down grade is still very much on the cards in December. Discovery (JSE code: DSY) has so many moving parts but for me the key is Vitality is now in 14 markets around the world. I remain a happy shareholder albeit they've done very little over the last year or so. We have a lot of shopping malls in South Africa, b some reports more per capita than any other country. Hyprop (JSE code: HYP) is by far the best of the bunch with regard local malls as they own high traffic top end malls. Mr Price (JSE code: MRP) seems to have lost the mantle. They have now had three reporting seasons over the last year and all disappointed. Is it just bad buying and the weather? I suspect they're seriously struggling under the weight on new competition from the likes of H&M and C

Questions, questions, questions Simon Shares Metrofile (JSE code: MFL) results saw HEPS +4.6% (very modest) and the full year dividend 42.9% putting it on a dividend yield of some 6%. Wowness and why I own the stock, for the dividend. PPC nil paid letters (NPLs) started trading yesterday as PPCN. People are asking me what to do with them and I am sticking to my story. Shorter term after they convert we may get a bounce, longer term PPC has real risks and I would not want to be a holder. So short answer is sell. Bidvest (JSE code: BVT) results were weak with single digit HEPS growth of 2.5% while Bidcorp (JSE code: BID) had great HEPS growth. We know the story and why they split, one local one offshore. Nigerian GDP stays negative and country is now in a technical recession. More tough times for local companies operating in that market. I am being asked if I am selling the gold stocks in the momentum portfolio? The answer is no, it is a rules based system and we follow the rules. GIVRES has done an amazing 99

Role of a Stock Broker in your investment journey Simon Shares More finance minister concerns and more rand weakness. The bigger picture is you have to have a bigger picture investment view otherwise events like this will hurt. In the last of this three part series if you had R300, which ETF would you buy? We ask Warren Ingram and Craig Gradidge for their view. Trading Master Class, an index trading system is online and follow up in on Monday at 1pm. Tonight in Durban we have a JSE Power Hour - 9.97562 Possible Pitfalls in Investment Planning Our home ownership is the new broke podcast is still generating lots of buzz. Kristia has been on leave so we reward a bunch of Fat Wallet Shows, we will revisit the topic Monday week (5 September). Role of a Stock Broker in your investment journey Simon Brown - Founder of JustOneLap.com Ridwaan Moolla - ABSA, Head of Digital Enablement in Wealth and Investments Charles Savage – Purple Group, Group CEO Kevin Algeo – IG, Head of IG Greg Kangleas - Vunani Private Client

Where to for the Rand? Simon Shares The Dow Jones, S&P500 and Nasdaq all closed at all time highs for the first time since December 1999. Dog stocks, don't mix price and fundamentals. I been buying PTXTEN after exiting my STXDIV and not being blown away by DIVTRX. If you had R300, which ETF would you buy? We ask Nerina Visser & Keith McLachlan for their view. Trading Master Class, an index trading system is online. Garth MacKenzie TradersCorner.co.za Where too for the rand? We've seen it stronger this year after a blow out late last year and into January. Garth offers a technical view and below is the long term monthly chart of USD/ZAR. Long term monthly USD/ZAR chart We Get Mail Fouche Would there be any merit in the argument that Japan is 20 years ahead of "us" (USA Europe world markets that are applying QE) and we could be looking at similar years of sideways movement? Aaron I have an aunt who wants to start saving R10k p/m for the next 12 months. What can you advise as the most suitabl

Simon Shares US mattresses with Steinhoff (JSE code: SNH)? Paying more than double the last traded price? MTN looks all ugly. Forget the fine, forget over a billion Rands in associated costs. Nigerian and South African markets look weak and I still say they need to transition into being a data utility. That said there's a nice trade from around R122 - R140. SABMiller (JSE code: SAB) leaving the JSE on 11 October (most likely) after listing on the JSE in 1897 (just two years after being founded and a decade after the JSE was founded). SAB has been one of the key drivers of the Indi25 index over the last decade (SAB +472%, All Share +154%). They're going to leave a gapping hole. If you had R300, which ETF would you buy? We ask the Just One Lap team for their picks. The Fat Wallet Show goes where few are brave enough to trend. Renting vs. buying, what does the maths say? Keith McLachlan from Alpha Wealth Finding a local Berkshire Hathaway? Simon answered a listener questions suggesting that maybe Conduit Capit

Short zombie stocks Simon Shares Did you sell your dogs? Keith McLachlan commented on Conduit Capital and it's not all wannabe Berkshire Hathaway. Second session in the first Trading Master Class with IG was on Tuesday. We're looking at a CFD trading plan and this session went live on the IG platform looking for stocks and three buys popped up; Barclays Africa Group (JSE code: BGA), PSG & Woolies (JSE code: WHL). The Fat Wallet Show goes back to bonds because last time we started complicated which is not what Fat Wallets are about. Small is the new big says Trader Petri and we agree 100%. Short the zombie stocks We Get Mail Johan I would appreciate it very much if you could tell me where one would declare CFD trading outcomes on the SARS form. Have just spent 45 minutes on the phone to SARS help without making any progress. Sarah What about Bitcoin as an investment? Pipcoin is a scam. 123 Download the audio file here or subscriber to our feed here or sign up for email alerts as a new show goes

Sell the dogs (sorry dogs) Simon Shares Ellies (JSE code: ELI) results were as ugly as expected and the company is being kept alive by their bankers at Standard Bank. Megatron is worthless after buying it for R180million in 2008 and spending some half billion keeping it afloat. A few weeks ago in FinWeek I said sell ELI at around 60c and I would not be a buyer now. Kumba (JSE code: KIO) results were not bad. They have got their cost down to $34/tonne from closer to $55 previously. It does mean less production to get the lower costs and the market is still in massive over supply but they at least now positioned to (likely) survive. SABMiller (JSE code: SAB) got an extra pound with the offering being revised to GBP45 but some minority shareholders are still not happy as the pound has weakened. One can hardly blame SAB or AB Inbev for that but the minority shareholders need 25% to block the deal and that's very unlikely. Kristia looks at ETF costs in her blog this week. The Fat Wallet Show takes Magnus Heystek

Private equity coming to the JSE Simon Shares So Trump is real and is now officially the Republican nomination for the US presidency. The point is he can win it and then the question is what will markets do? Likely pretty much like what happened after Brexit, initial panic and then they will move on. The first IG Master Class kicked off on Tuesday with a complete CFD share trading system. Nice simple and practical with a follow up webcast on 2 August at 1pm. I have added a live link to prices I am prepared to pay for my 'till death do us part portfolio', the link is here. Thursday evening we're at the JSE for a Power Hour, Investors are normal, not rational. Kristia reviews another Top40 ETF, the Ashburton Top40 (JSE code: ASHT40). Stuart MacKenzie (CEO Ethos Pvt Equity) and Peter Hayward-Butt (CEO Ethos Capital) Ethos Capital (JSE code: EPE) will be listing on the JSE in August via a private placement. Ethos is a Private Equity investment vehicle that offers a different investment asset class for patient i

Simon Shares A lot of people worried abut DBXWD post Brexit, but the issue is it is global so the UK makes up only about 8% while EU is about 13%. I hold the ETF and continue to buy every month. The Just One La team has a monster busy week next week. Join us at; Trading Master Class: Designing a trading system from scratch (Tue 19th) Classic FM making wealth simple  (Wed 20th) JSE Power Hour: Investors are normal, not rational  (Thu 21st) Kristia asks which ETF? Drikus Combrink - Capicraft Investment Partners Locally earnings season has come to an end and markets are at or near all time highs. Are these valuations justified by the earnings we've seen? Good, bad, ugly and any stand outs. Drikus touches on some concerns (SABMiller & Richemont) and suggests really focusing on the core numbers rather than top line numbers that could be skewed by currency moves, mergers or new stores. His major concern remains QE and how that unravels. We Get Mail Ronnie What is the recommended amount to start with inv

Stock Broker vs. FSP Stock Broker vs. FSP Simon Shares So Brexit is now a thing, or is it? Mostly it is confusion. Money Expo this Friday and Saturday. My 'till death do us part' portfolio webcast in next week Thursday at 8pm. Satrix Indi has been a star ETF with the best returns over 10 years at over 400%. Lazy System is long Indi25 and MidCap. Charles Savage, CEO Purple Capital / Easy Equities What's the difference between a traditional stock broker and a Financial Services provider (FSP)? Is a FSP risky and do I really own the shares? These are popular concerns so we got Charles on the line to address the issues. We also briefly touched on their new baskets they launched last month.   JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views o

Simon's till death us part portfolio Simon Shares In last weeks show I covered Porter's Five Forces for selecting awesome shares worthy of investing in. This week I delve into my personal 'til death do us part' portfolio explaining why I hold each share. In two weeks (13 July, book here) we'll have a webcast where you can interrogate my selection and also propose shares of your own for inclusion into a 'til death do us part' portfolio. At the time of recording my portfolio is as below (Find my consistently updated portfolio here) BHPBilliton (JSE code: BIL) Capitec (JSE code: CPI) Citylodge (JSE code: CLH) Discovery (JSE code: DSY) Famous Brands (JSE code: FBR) Metrofile (JSE code: MFL) Richemont (JSE code: CFR) Sasol (JSE code: SOL) Shoprite (JSE code: SHP) Woolies (JSE code: WHL) === JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed i

Porter's Five Forces Finding awesome stocks to invest in Simon Shares I am traveling and then on leave, so this week I look at Porter's Five Forces and in next weeks podcast I follow this up by running my 'death do us part' portfolio of stocks through the process. Then two weeks after that (13 July 8pm) we'll do a live webcast whereby you can ask questions about my portfolio and any stocks you may consider worthy of a 'death do us part' portfolio (my portfolio is always published live here). Book for the webcast here. Porter's Five Forces Competitive rivalry within an industry Threat of substitute products Threat of new entrants Bargaining power of customers Bargaining power of suppliers I add; Buy winning stocks in winning sectors Legislative risk You'll find a review of Porter's Five Forces here and I also include it in the Boot Camp video on Fundamentals and Technicals in which I include examples from local stocks. JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an indep

Hedge funds for everybody Hedge funds for everybody Simon Shares MTN have concluded the Nigerian fine at around a third of the initially proposed fine. A good deal for the company but they should never have found themsleves in the position in the first place an I still do not like management and am not a buyer. Pick n Pay (JSE code: PIK) are finally getting rid of their 35-year pyramid structure that key control of the company in the Ackerman hands even though they only held c26% of the shares. But they are retaining control via special unlisted B shares, so nothing changes and the company remains under the control of a family who frankly have conceded the title of retail to Shoprite (JSE code: SHP). Brexit fears are running wild, ignore it. It's just short term noise. Big picture it matters not one way or the other, it just hysteria right now that will reach deafening levels by the time they vote next Thursday. Jean Pierre Verster portfolio manager Fairtree Capital The hedge fund industry in South Afr