Hhhhhmmm these South African public holidays have really played havoc with any day-trading activities so I've had to spend my time on the "investment" side of my portfolio.
Added a few more PSG and ZGOVI's to my portfolio and I've also added Country Bird Holdings to my watchlist.
PSG
Was pretty happy with the results out of PSG and I'm quite liking the way that their companies are actively seeking acquisitions while others are heading for the hills. Check how nicely Capitec has done in recent weeks since their results came out.
Below R16, I've been adding a few more PSG to the portfolio.
I'm also watching PSG for some action around their Paladin subsidiary which has been steadily adding to its holding in Top Fix Holdings. (Not totally sure what the strategy is here, because I'd have thought there were better quality assets - but I guess we trust Jannie Mouton's judgement on all of this)
ZGOVI
I'll blog separately on my Exchange Traded Fund (ETF) strategy for my portfolio but I've continued to add these ZGOVI's to my portfolio for a bit of diversity into another asset class.
These things have held up quite nicely and coupled with their distribution, they've been worthwhile to hold through all this turmoil.
Pick 'n Pay / Pikwik
How good were those results out of Pick 'n Pay! I have a couple of Pikwik in my portfolio and those results mean I'll probably add a few more to my portfolio. Some success in Australia with the Franklins operation at last and good cash flows. Nice defensive option in the portfolio and with decent cash flows come decent dividends.
Altech / Altron
Altech released their financial results yesterday and they also looked good. As far as IT companies go, my pick would be Altech. However while I like the Altech story, I've actually been adding the Altron shares (wider power and infrastructure story as well as access to ALT) as well as the Altron prefs to my portfolio for some dividend yield.
Strategy
In terms of strategy, I'm still short equity and long gold (underlying and AngloGold).
I see China has just announced that they've bought a stack of Gold which has driven the price back above the 900 dollar mark.
Equities are still looking a little shaky in general and it would appear that Chrysler is going into bankruptcy protection in next few days. Stress tests out of the banks also due out today... gonna be interesting.
Showing posts with label Preference shares. Show all posts
Showing posts with label Preference shares. Show all posts
Thursday, April 23, 2009
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....
Saturday, January 24, 2009
Novice investors
One of my friends is involved with an amateur investment club which involves a couple of ladies getting together, pooling
some funds together, trying to educate themselves about the market and with any luck making a few bucks on the side.
All in all I think this is great but I wanted to maybe post something for novice investors to consider because of something
she said. I asked her how it had been going and she told me that they were down nearly 30% and then said: "Everybody is down
30% because this is how far the JSE has fallen and we just needed to accept this is part of the function of being
invested..."
I pointed out to her that they are using "Shares" as a very broad term and not all instruments on the JSE were down 20 - 30%
in 2008 which piqued her interest in a little.
She got the idea that certain shares were down less than others but didn't understand that there was access to different investment classes on the JSE - some of which had produced a positive return without actively shorting the market.
Preference shares
I'm not going to touch on the mechanics of preference shares too much here but I thought I'd use them as a way to highlight the difference an instrument can make when assessing a particular investment (provided you understand the role they play in YOUR portfolio).
But here was the example I gave her:
Standard Bank ordinary share with a dividend yield of around 4% in 2008 lost around 14% from 1 January 2008 - 31 December
Grindrod ordinary share with a similar dividend yield lost around 30% once you took the dividend yield into account
In comparison
The Standard Bank preference share (dividend included) returned +13.95%
The Grindrod preference share (dividend included) returned roughly a 4% loss
Proves that not everything got wiped out despite popular belief
Property Unit Trusts
I enjoy these as an asset class and if one considers that GrowthPoint returned approximately 5% positive (distribution included) and ApexHi returned about 4.7% positive then it shows that some asset classes did in fact do ok in 2008.
Exchange Traded Funds
Just picked a few here but the X-Tracker (DBXJP) tracking the Japanese market lost around 12% compared to the 26% lost by Satrix 40.
The ZGovi (tracks SA Bond Index returned 12.5%) in the 3 months its been listed (including the turmoil in October) while the NewGold ETF (GLD - which tracks the Gold Price) returned just under 40% - not too shabby Nige...
Even that Carbon Credit note (+5.5%) so far has had a positive return despite the fall in the market...
Conclusion
This isn't a punt to buy any of the above. The point I am trying to make to novice investors is that a lot of people have been scared off by some of the media whores showing how terrible things are in the market, but not focusing on some of the well managed portfolios or products that have in fact held their own despite falling markets.... These are also not instruments you need to watching 24/7 worrying about volatility wiping out your investments.
It all comes down to education and if you can educate yourself you'll quickly learn not to tar the words: "Stock market" and "Investments"... Yeah the market got killed last year but there are asset classes that went up in some cases - the idea is to try and educate yourself to see opportunities and diversify the risk...
some funds together, trying to educate themselves about the market and with any luck making a few bucks on the side.
All in all I think this is great but I wanted to maybe post something for novice investors to consider because of something
she said. I asked her how it had been going and she told me that they were down nearly 30% and then said: "Everybody is down
30% because this is how far the JSE has fallen and we just needed to accept this is part of the function of being
invested..."
I pointed out to her that they are using "Shares" as a very broad term and not all instruments on the JSE were down 20 - 30%
in 2008 which piqued her interest in a little.
She got the idea that certain shares were down less than others but didn't understand that there was access to different investment classes on the JSE - some of which had produced a positive return without actively shorting the market.
Preference shares
I'm not going to touch on the mechanics of preference shares too much here but I thought I'd use them as a way to highlight the difference an instrument can make when assessing a particular investment (provided you understand the role they play in YOUR portfolio).
But here was the example I gave her:
Standard Bank ordinary share with a dividend yield of around 4% in 2008 lost around 14% from 1 January 2008 - 31 December
Grindrod ordinary share with a similar dividend yield lost around 30% once you took the dividend yield into account
In comparison
The Standard Bank preference share (dividend included) returned +13.95%
The Grindrod preference share (dividend included) returned roughly a 4% loss
Proves that not everything got wiped out despite popular belief
Property Unit Trusts
I enjoy these as an asset class and if one considers that GrowthPoint returned approximately 5% positive (distribution included) and ApexHi returned about 4.7% positive then it shows that some asset classes did in fact do ok in 2008.
Exchange Traded Funds
Just picked a few here but the X-Tracker (DBXJP) tracking the Japanese market lost around 12% compared to the 26% lost by Satrix 40.
The ZGovi (tracks SA Bond Index returned 12.5%) in the 3 months its been listed (including the turmoil in October) while the NewGold ETF (GLD - which tracks the Gold Price) returned just under 40% - not too shabby Nige...
Even that Carbon Credit note (+5.5%) so far has had a positive return despite the fall in the market...
Conclusion
This isn't a punt to buy any of the above. The point I am trying to make to novice investors is that a lot of people have been scared off by some of the media whores showing how terrible things are in the market, but not focusing on some of the well managed portfolios or products that have in fact held their own despite falling markets.... These are also not instruments you need to watching 24/7 worrying about volatility wiping out your investments.
It all comes down to education and if you can educate yourself you'll quickly learn not to tar the words: "Stock market" and "Investments"... Yeah the market got killed last year but there are asset classes that went up in some cases - the idea is to try and educate yourself to see opportunities and diversify the risk...
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