I see that there has been quite a lot of talk about South African small caps in recent weeks. Probably because the market has been so kak that people have nothing better to talk about.
With that in mind, I thought it would be fun to look at some of the small-caps which appear on my screen and see whether other traders agree?
Beige Holdings
I have been tipping this one for ages and so far it has gone nowhere fast. This should in theory be an easy stock to double your money on, but geez I have been saying that for how long and I'm still waiting.
ISA
This is a good stock in a growth industry. Cash generative, no debt and it actually pays a dividend - a rarity in the IT sector. Internet and IT security is going to continue to be a key industry going forward. ASk anybody who has had their home or work PC or mobile device crippled by a computer virus and you will appreciate why a business like this has so much to offer and will consistently be able to achieve ongoing annuity income.
Interwaste
I walked to the shops this morning and was aware of all the uncollected rubbish on the pavement from last weeks municipal strike. Its unpleasant to live in a decent neighbourhood and be surrounded by flies and rotting waste and there is not a hell of a lot that you as the ordinary consumer can do about it.Now imagine how much waste is being generated by businesses and more importantly how much it costs to deal with that waste. This share hasn't exactly covered itself in glory since being listed, but its a good industry to be in with very high barriers to entry.
Buildmax
I was actually checking up on my Brait shares and I was reminded that the Brait guys paid R1.50 a share for Buildmax. Now its trading around 50c a share. I still think it is a good story for those with a longer-term appetite.
Anybody got any better suggestions?
Showing posts with label Beige Holdings. Show all posts
Showing posts with label Beige Holdings. Show all posts
Monday, April 19, 2010
Friday, January 15, 2010
Obscure postings
Posting late at night sometimes I don't communicate that well. I started mumbling something about small cap shares and then found bed calling so let me try again.
I think there may be some merit in certain of the JSE listed small cap shares in 2010 and here are a list of stocks which I believe should be considered. Some are great businesses with a good track record and some are a little higher risk.
AdvTech
South Africa's leading private education provider, AdvTech is one of those stocks which could be classified as defensive. Parents will always want to equip their kids with the best opportunities. There is a massive shortage in quality education providers in the country and AdvTech gives you one way of participating in it.
Historical PE multiple of 12 means its not cheap but sometimes you pay a little extra for a bit of quality
CIC Holdings
This is a nice little company which has re-rated significantly since I tipped it at 80c last year. Presently trading at around 130c a share it still only sits on an historical PE of 5 times earnings. Its a company that not a lot of people know much about but it owns quite a lot of agencies in growth markets in Africa. It's partly owned by Paladin Capital (PSGs investment arm). A positive for it is first mover advantage but a negative in that it is an agency type business and does not have a lot of its own Intellectual Property. Still might have some legs though.
Zeder
Jim Rogers is still mumbling on about farming being all the rage in the coming years and I can buy that story. Zeder, the PSG agri-ops business has been very aggressive in the last 12 months sorting out and growing its portfolio.
Paladin Capital
This is your alternative in the education space (but with far less concentration). Paladin - the PSG investment arm - is in the process of rolling out and expanding its network of Curro schools. These guys have been tipped as being super aggressive so and probably not the nicest management around but they'll get the job done.
Pallinghurst
This is the only resource play which jumps out at me but I am useless at judging the sector so don't go on my word. I was speaking to one of the resource guys yesterday and his thinking is that it will either be a 10-bagger or it will go nowhere fast.
Beige Holdings
I am probably going to take much flak for this one but this is a company I really like. Its got much too much paper in issue but its not the worst business around by the stretch of anyones imagination. It has quite a lot of negative legacy issues which its battling to shake off. However it has a major competitive advantage in terms of that new factory which it has put together in Chloorkop plus that factory in Durban (Quality Products I think its called). They can interchange product lines extremely quickly meaning they can shift up or down depending on demand. Paper is a huge issue though. Directors have also not been shy to buy their own stock.
Glenrand MIB
Buying a share in an insurance broking operation in the current economic climate seems to be madness. But that hasn't stopped the big-wigs at GlenMib putting their money down on a regular basis. Something is potting here and a historical PE of 9 considering the problems they had last year may be a sign that better earnings are coming through.
If anything else jumps out at me, I'll post it below this thread but it might be something to look at.
I think there may be some merit in certain of the JSE listed small cap shares in 2010 and here are a list of stocks which I believe should be considered. Some are great businesses with a good track record and some are a little higher risk.
AdvTech
South Africa's leading private education provider, AdvTech is one of those stocks which could be classified as defensive. Parents will always want to equip their kids with the best opportunities. There is a massive shortage in quality education providers in the country and AdvTech gives you one way of participating in it.
Historical PE multiple of 12 means its not cheap but sometimes you pay a little extra for a bit of quality
CIC Holdings
This is a nice little company which has re-rated significantly since I tipped it at 80c last year. Presently trading at around 130c a share it still only sits on an historical PE of 5 times earnings. Its a company that not a lot of people know much about but it owns quite a lot of agencies in growth markets in Africa. It's partly owned by Paladin Capital (PSGs investment arm). A positive for it is first mover advantage but a negative in that it is an agency type business and does not have a lot of its own Intellectual Property. Still might have some legs though.
Zeder
Jim Rogers is still mumbling on about farming being all the rage in the coming years and I can buy that story. Zeder, the PSG agri-ops business has been very aggressive in the last 12 months sorting out and growing its portfolio.
Paladin Capital
This is your alternative in the education space (but with far less concentration). Paladin - the PSG investment arm - is in the process of rolling out and expanding its network of Curro schools. These guys have been tipped as being super aggressive so and probably not the nicest management around but they'll get the job done.
Pallinghurst
This is the only resource play which jumps out at me but I am useless at judging the sector so don't go on my word. I was speaking to one of the resource guys yesterday and his thinking is that it will either be a 10-bagger or it will go nowhere fast.
Beige Holdings
I am probably going to take much flak for this one but this is a company I really like. Its got much too much paper in issue but its not the worst business around by the stretch of anyones imagination. It has quite a lot of negative legacy issues which its battling to shake off. However it has a major competitive advantage in terms of that new factory which it has put together in Chloorkop plus that factory in Durban (Quality Products I think its called). They can interchange product lines extremely quickly meaning they can shift up or down depending on demand. Paper is a huge issue though. Directors have also not been shy to buy their own stock.
Glenrand MIB
Buying a share in an insurance broking operation in the current economic climate seems to be madness. But that hasn't stopped the big-wigs at GlenMib putting their money down on a regular basis. Something is potting here and a historical PE of 9 considering the problems they had last year may be a sign that better earnings are coming through.
If anything else jumps out at me, I'll post it below this thread but it might be something to look at.
Wednesday, February 25, 2009
Shopping list
A bit of income is coming into my account again at the end of this month and I'm going to be using some of that cash to add some more shares to my portfolio.
As things stand at the moment, I'll be adding the following shares
PSG: Jannie Mouton continues to buy up these shares left, right and centre. I've previously blogged on why I think PSG remains a good buy and Mouton has been good at returning value to shareholders so I'm going to rely on his judgement here.
Capitec: As far as banking offerings going, Capitec remains one of the most exciting in the sector from a growth perspective. At a time when consumers are looking for the most cost-effective offerings around, Capitec would fit the bill and I wouldn't be surprised if they pick up customers in these tough times.
Altron Preference shares: I indicated in previous posts that I think preference shares are going to be a handy asset class in the coming months and combined with the demand for power related projects, I think it makes sense to add some of the Altron Prefs to the ordinary underlying shares in the portfolio as well.
Growthpoint: Income remains key to growing my portfolio and an investment in a blue chip property offering like Growthpoint will hopefully boost this aspect of my portfolio.
Milkworx: My cheap and nasty turnaround punt. I promised myself I would add a few more of these at 3c so I would be able to participate further in the rights issue.
Beige: Again I've blogged on this company before but my argument was that it trades at a nice discount to NAV and keep tucking a few of them away....
As things stand at the moment, I'll be adding the following shares
PSG: Jannie Mouton continues to buy up these shares left, right and centre. I've previously blogged on why I think PSG remains a good buy and Mouton has been good at returning value to shareholders so I'm going to rely on his judgement here.
Capitec: As far as banking offerings going, Capitec remains one of the most exciting in the sector from a growth perspective. At a time when consumers are looking for the most cost-effective offerings around, Capitec would fit the bill and I wouldn't be surprised if they pick up customers in these tough times.
Altron Preference shares: I indicated in previous posts that I think preference shares are going to be a handy asset class in the coming months and combined with the demand for power related projects, I think it makes sense to add some of the Altron Prefs to the ordinary underlying shares in the portfolio as well.
Growthpoint: Income remains key to growing my portfolio and an investment in a blue chip property offering like Growthpoint will hopefully boost this aspect of my portfolio.
Milkworx: My cheap and nasty turnaround punt. I promised myself I would add a few more of these at 3c so I would be able to participate further in the rights issue.
Beige: Again I've blogged on this company before but my argument was that it trades at a nice discount to NAV and keep tucking a few of them away....
Thursday, February 12, 2009
Oh come on!
Bugger.... The Sasol share price fugged me around today and I was eventually stopped out of my long position. Three losses in a row.
Was planning just to sit on my hands, but I noticed a massive volume go through on Beige Holdings and thought maybe something was happening there.
Noticed an article on Fin24.com saying that the company had been buying back a chunk of its shares so I used some of my scraps to pick up a few more shares in Beige.
We'll wait and see.
Was planning just to sit on my hands, but I noticed a massive volume go through on Beige Holdings and thought maybe something was happening there.
Noticed an article on Fin24.com saying that the company had been buying back a chunk of its shares so I used some of my scraps to pick up a few more shares in Beige.
We'll wait and see.
Sunday, February 1, 2009
Wanna know how to frustrate a trader??
Have everything line up for a perfect trade, nice weakness in the share price (if he's short) and then suddenly things change direction almost inexplicably the share reverses direction...
That would be the story of my life on Friday and sometimes I wonder whether I should just exit the trade.
Sasol fell sharply to R261 and then suddenly rebounded to R276. My guess is the weaker rand and a little bit of strength in Texas Tea on Friday got traders in late in the day...
Fortunately the Dow didn't play the game for the bulls and I wouldn't be surprised with downside on Monday. So yip I'm staying short for a while.
I'm still in the equity market and here's what I'm buying at current levels:
Reinet (REI) - Story remains convincing
Foord Compass (FCPD) - These have been a good investment and the yield remains healthy
Shoprite - Top retailing entry
Beige (BEG) - Been buying this small-cap for a while
Bioscience Brands (BIO) - Ditto
Milkworx (MKX) - Heard some chatter about this company and going to take a punt on it
For the rest I remain relatively negative on the market at the moment and still believe we could see the Dow as low as 6800...
That would be the story of my life on Friday and sometimes I wonder whether I should just exit the trade.
Sasol fell sharply to R261 and then suddenly rebounded to R276. My guess is the weaker rand and a little bit of strength in Texas Tea on Friday got traders in late in the day...
Fortunately the Dow didn't play the game for the bulls and I wouldn't be surprised with downside on Monday. So yip I'm staying short for a while.
I'm still in the equity market and here's what I'm buying at current levels:
Reinet (REI) - Story remains convincing
Foord Compass (FCPD) - These have been a good investment and the yield remains healthy
Shoprite - Top retailing entry
Beige (BEG) - Been buying this small-cap for a while
Bioscience Brands (BIO) - Ditto
Milkworx (MKX) - Heard some chatter about this company and going to take a punt on it
For the rest I remain relatively negative on the market at the moment and still believe we could see the Dow as low as 6800...
Friday, January 2, 2009
Portfolio realignment
I used the first trading day of 2009 to do a bit of realignment to my portfolio. Toward the end of 2008, I spent quite a lot of time look at Exchange Traded Funds (ETFs) to provide a bit of protection and spreading some of the risk.Started 2009 with some specific counters in mind and have outlined them below:
Small caps:
Beige Holdings (BEG) - have been a regular buyer of this counter over the last few years and expect some big things in the future
Bioscience Brands (BIO) - believe that for the patient investor, this is another share that could offer some nice growth potential
Freeworld coatings (FWD) - New one on my list - noticed that it is trading well below its NAV and expect it to come up for grabs for the private equity players
Buildmax (BDM) - Been watching the sharp guys at Brait taking a strategic stake in this business and think that it also offers some intriguing longer term opportunities in the coal and energy space
Interwaste (IWE) - I'm a big believer in the whole waste management game - particularly in South Africa. With Enviroserv having been delisted, Interwaste proves the only entry point - even if the share price has been somewhat battered since listing.
Larger industrials:
Grindrod (GND) - Touched on this shipping and diversified industrial counter previously
Invicta Holdings (IVT) - Long time success story and one of those which I believe will be well positioned despite tough economic conditions
Big names:
Naspers (NPN) - the media company with its offshore strategy (particularly in South America and Asia definately fits my portfolio well)
Reinet (REI) - the Rupert hedge fund as its affectionately known. These guys have made a living generating huge wealth for South Afircans. Suppose it would be good to trust them with a few bucks of mine.
Pref shares and others:
Grindrod Pref (GNDP)
Standard Bank Pref (SBPP)
Beige Holdings Pref (BEGP)
Newgold (GLD) - Gold exchange traded fund - didn't have anything in my portfolio at this stage and thought I might hedge my bets a bit here
CBN013 - The carbon credit note issued by Sterling Waterford. Something a little different for my portfolio but I believe in the longer term story and bought it for many of the reasons I liked GLD.
The main thinking behind this realignment is to begin rebuilding some wealth, protecting the value of the portfolio (in hard currency terms) and using things like the Preference shares to begin to generate cash flow from the investments.
HOWEVER
I still don't buy that the US has seen the end of its troubles and with lots of uncertainty around India / Pakistan - I wouldn't get too excited about this new year rally. Interesting times ahead....
Small caps:
Beige Holdings (BEG) - have been a regular buyer of this counter over the last few years and expect some big things in the future
Bioscience Brands (BIO) - believe that for the patient investor, this is another share that could offer some nice growth potential
Freeworld coatings (FWD) - New one on my list - noticed that it is trading well below its NAV and expect it to come up for grabs for the private equity players
Buildmax (BDM) - Been watching the sharp guys at Brait taking a strategic stake in this business and think that it also offers some intriguing longer term opportunities in the coal and energy space
Interwaste (IWE) - I'm a big believer in the whole waste management game - particularly in South Africa. With Enviroserv having been delisted, Interwaste proves the only entry point - even if the share price has been somewhat battered since listing.
Larger industrials:
Grindrod (GND) - Touched on this shipping and diversified industrial counter previously
Invicta Holdings (IVT) - Long time success story and one of those which I believe will be well positioned despite tough economic conditions
Big names:
Naspers (NPN) - the media company with its offshore strategy (particularly in South America and Asia definately fits my portfolio well)
Reinet (REI) - the Rupert hedge fund as its affectionately known. These guys have made a living generating huge wealth for South Afircans. Suppose it would be good to trust them with a few bucks of mine.
Pref shares and others:
Grindrod Pref (GNDP)
Standard Bank Pref (SBPP)
Beige Holdings Pref (BEGP)
Newgold (GLD) - Gold exchange traded fund - didn't have anything in my portfolio at this stage and thought I might hedge my bets a bit here
CBN013 - The carbon credit note issued by Sterling Waterford. Something a little different for my portfolio but I believe in the longer term story and bought it for many of the reasons I liked GLD.
The main thinking behind this realignment is to begin rebuilding some wealth, protecting the value of the portfolio (in hard currency terms) and using things like the Preference shares to begin to generate cash flow from the investments.
HOWEVER
I still don't buy that the US has seen the end of its troubles and with lots of uncertainty around India / Pakistan - I wouldn't get too excited about this new year rally. Interesting times ahead....
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