I have just logged into my e-mail and seen dividend notifications for my holdings in Sasol, FirstRand and Discovery as well as a re-investment notification for my Z-Govi holding and it reminded me how much of investing is simply method and repetition.
For sure there is little glamour in simply clocking up the dividends but you have to ask yourself - why work if you don't have to?!
I had a look at the performance of the Satrix Divi Exchange Traded Fund (ETF) product over the last year and I see that you have enjoyed a return of around 33%. Worst case scenario is an annual dividend yield of 4.5% which is not the worst return around and if you are looking for low-cost dividend investment strategies then this might be a product to consider adding to your portfolio.
Speaking of good dividend payers, has anybody been watching the rise in the Brait shareprice? It seems to have had a bit of a kick over October rising from R21 to above R24. This is one of those stocks I've kept in my portfolio primarily for its dividend yield which is sitting at about 6%.
The company did release a trading statement recently saying that earnings would be up sharply for the six months.
Basic eps and heps: 72.8 ZAR cents
Diluted eps and heps: 72.7 ZAR cents
This puts it on a PE multiple of around 14 times earnings and if you buy into the idea that Brait is the "smart money" then this looks attractive, particularly if the private equity portfolio is at the bottom of its cycle.
Another reason which might be contributing to the rise in the Brait share price is the similar rise in the Buildmax counter, in which Brait is a significant investor. Buildmax has risen from 27c to touch 40c this month and it looks like a turnaround plan is in place.
Happy trading investors.
Showing posts with label Buildmax. Show all posts
Showing posts with label Buildmax. Show all posts
Saturday, October 16, 2010
Friday, October 1, 2010
Small cap update - 2 October 2010
Hello fellow traders...
I see it has been a good few months since I last updated this blog which probably does not reflect that well on me.
What DOES however reflect quite well on me is the TrustCo share price over that period.
Let's take a look at some of the small-cap shares that have caught my eye over the last few months and where they are at now.
TrustCo
This share has really done nicely. Since I last blogged it, has risen from the 20's to touch a high of 65c with a lot of media attention. Directors have bought a whole whack of shares as well which has helped the story along.
In September, the company announced transactions with Econet and the International Finance Corporation (IFC) both of which should have an impact on the business.
Still think there is value in it if you are patient.
Interwaste
Share price wise this company has largely gone sideways over the last few months, but it is still up a bit since April.
On the plus side the financial results have shown something of a turnaround from the previous financial year and they have gained a number of new clients - the benefits of which should probably come through in the second half of the year. Guidance from management is that the second half of the year is traditionally stronger as well so let's see what comes through for the full-year.
One thing which needs to be watched a little closely is the cash position of the business.
The company overdraft facility has risen from R4.7m to nearly R30m for the six months ended June 2010. There is also negative cashflow as the business has made some serious capital investments.
For the 12-months, the net cash position had declined to -R21m.
Buildmax
This has been such a mixed bag sometimes I wonder.
The share is up from 27c to 31c and it looks like some serious corrective action is being taken to try and turn this business around.
New management are in place, rights issues have been sorted.
I'm gonna hang on to this one.
IPSA
Little to write home here. The share has gone nowehere.
However this announcement at the end of August will give shareholders some cheer:
"IPSA PLC (AIM: IPSA), the developer, owner and operator of power generation capacity in Southern Africa, announces that its wholly-owned subsidiary, Newcastle Cogeneration (Pty.) Limited has entered into a power purchase agreement ("PPA") with Eskom, the South African electricity parastatal, under the medium term power purchase programme ("MTPPP"). Under the new PPA all electricity output from the plant would be sold to Eskom for the period to 31 March 2015, and is based on 13 MW of capacity."
Again lets see what this translates into operationally.
RE:CM and Calibre
I got my hands on a few of these pref-shares last month and will try and get a few more as time goes by. I like Piet Viljoen in terms of his style of value investing and would like to think he can add value through this vehicle.
The share listed at R10 and has floated somewhere between R10 and R11 but there has been really limited liquidity so that is something that makes this tricky to watch.
Viljoen said that investors should expect "slow and steady" to start with so if you have a long-term investment horizon, then I'd probably be adding a few more of these to the portfolio as well.
Some others to consider
Three other stocks I have nibbled at in the last few months are Nigerian oil and gas group Oando, private equity fund Brait and Paladin Capital.
There seems to be some action happening at Paladin as the share price has risen more than 20% in the last few weeks. However this puts it well above its net asset value which is not always that easy to justify buying at the moment.
I see it has been a good few months since I last updated this blog which probably does not reflect that well on me.
What DOES however reflect quite well on me is the TrustCo share price over that period.
Let's take a look at some of the small-cap shares that have caught my eye over the last few months and where they are at now.
TrustCo
This share has really done nicely. Since I last blogged it, has risen from the 20's to touch a high of 65c with a lot of media attention. Directors have bought a whole whack of shares as well which has helped the story along.
In September, the company announced transactions with Econet and the International Finance Corporation (IFC) both of which should have an impact on the business.
Still think there is value in it if you are patient.
Interwaste
Share price wise this company has largely gone sideways over the last few months, but it is still up a bit since April.
On the plus side the financial results have shown something of a turnaround from the previous financial year and they have gained a number of new clients - the benefits of which should probably come through in the second half of the year. Guidance from management is that the second half of the year is traditionally stronger as well so let's see what comes through for the full-year.
One thing which needs to be watched a little closely is the cash position of the business.
The company overdraft facility has risen from R4.7m to nearly R30m for the six months ended June 2010. There is also negative cashflow as the business has made some serious capital investments.
For the 12-months, the net cash position had declined to -R21m.
Buildmax
This has been such a mixed bag sometimes I wonder.
The share is up from 27c to 31c and it looks like some serious corrective action is being taken to try and turn this business around.
New management are in place, rights issues have been sorted.
I'm gonna hang on to this one.
IPSA
Little to write home here. The share has gone nowehere.
However this announcement at the end of August will give shareholders some cheer:
"IPSA PLC (AIM: IPSA), the developer, owner and operator of power generation capacity in Southern Africa, announces that its wholly-owned subsidiary, Newcastle Cogeneration (Pty.) Limited has entered into a power purchase agreement ("PPA") with Eskom, the South African electricity parastatal, under the medium term power purchase programme ("MTPPP"). Under the new PPA all electricity output from the plant would be sold to Eskom for the period to 31 March 2015, and is based on 13 MW of capacity."
Again lets see what this translates into operationally.
RE:CM and Calibre
I got my hands on a few of these pref-shares last month and will try and get a few more as time goes by. I like Piet Viljoen in terms of his style of value investing and would like to think he can add value through this vehicle.
The share listed at R10 and has floated somewhere between R10 and R11 but there has been really limited liquidity so that is something that makes this tricky to watch.
Viljoen said that investors should expect "slow and steady" to start with so if you have a long-term investment horizon, then I'd probably be adding a few more of these to the portfolio as well.
Some others to consider
Three other stocks I have nibbled at in the last few months are Nigerian oil and gas group Oando, private equity fund Brait and Paladin Capital.
There seems to be some action happening at Paladin as the share price has risen more than 20% in the last few weeks. However this puts it well above its net asset value which is not always that easy to justify buying at the moment.
Thursday, August 5, 2010
Buildmax
This is a stock that I have been talking about for a while but have pretty much sat with egg on my face since making the call.'
Since June the share price has carried on sliding dropping from 50c to as low as 21c. Considering that in September 2007 and the private equity boys at Brait bought in at about 120c this has been a bit of a disappointment.
Anyways a new SENS announcement went out after the close of trade and this one catches my eye:
Buildmax is making a rights offer of 2.31 (two point three one) rights offer shares for every one Buildmax share held at a price of 12.5c per share. Brait and Coronation - two of the better value finders out there - have made an offer to underwrite the deal.
I guess for those who have a longer term investment horizon, this might not be the worst one to sit on....
Since June the share price has carried on sliding dropping from 50c to as low as 21c. Considering that in September 2007 and the private equity boys at Brait bought in at about 120c this has been a bit of a disappointment.
Anyways a new SENS announcement went out after the close of trade and this one catches my eye:
Buildmax is making a rights offer of 2.31 (two point three one) rights offer shares for every one Buildmax share held at a price of 12.5c per share. Brait and Coronation - two of the better value finders out there - have made an offer to underwrite the deal.
I guess for those who have a longer term investment horizon, this might not be the worst one to sit on....
Wednesday, May 26, 2010
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.
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.
Monday, April 19, 2010
SA small caps
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?
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?
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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