Market ramblings

I haven't blogged in a while - been sitting back watching the fun and games on the market and trying to work out where this whole thing is going.

Some very interesting things happening at the moment and volatility seems to be the story of the day.

I battle to find value in this market at the moment. I don't like what is happening in Europe and I think there will be some fall-out to come.

Having said that, the Dow below 10000 almost feels "orderly" rather than out and out panic and that's ok.

There are 3 stocks which catch my eye at the moment and investors might want to consider:

African Bank
Long been a popular choice in my portfolio. Results were not great and the market has turned a little sour on them but they have a lot of positives that could be taken out of these results. Ellerines systems are sorted, they are growing again and the demand for their kind of credit is coming back slowly. But more important than all of that is their ability to generate cash - and quickly!

I would buy it at under R30.

Buildmax
Brait reported earlier this week and they managed to keep this one out of their reporting. This coal mining contractor has been a disaster for the private equity firm falling from R1.15 to 30c and now Brait is having to underwrite a R150m.

35c, a rights issue on the cards. This is a story to watch.

Reinet
I've liked Reinet. Done bugger all except mirror British American since it was listed and its off about 15% in the month but in this market, this might not be the worst defensive play around.

Would be adding this to the portfolio at the moment.

----------------------------

Another interesting thing I picked up this evening is that Zimbabwe is allowing the establishment of four new newspapers. I think this is a further sign that normality is returning to this country which will have a positive spin for many of our resource operators.