New JSE listings
#16
(03-01-2017, 08:44 AM)Dancshares Wrote: @Groovy thanks, better prices if we can buy OTC, but I've heard that guys are not selling (lots of bids but no offers) due to the exciting listing on the main board later this year. Bleh.

Just asked Kristia from JustOneLap how to buy OTC and she said they will be discussing OTC in the next Fat Wallet Show. Listen out for it.

------------------------------------------------------------------------
Hi Daniel,

 
Good question! I bought some OTCs once, but straight after I did, the legislation changed. We'll discuss it in the next episode.
 
Thanks for listening!
 
Kristia
Entrepreneur with a marketing and sales background.

Register to invest via Easy Equities: http://bit.ly/2mDNXsT


#17
Remember Premier Foods and Fishing to start trading on the JSE TOMORROW.
Will you be buying?
Entrepreneur with a marketing and sales background.

Register to invest via Easy Equities: http://bit.ly/2mDNXsT


#18
(03-01-2017, 02:42 PM)Dancshares Wrote: Remember Premier Foods and Fishing to start trading on the JSE TOMORROW.
Will you be buying?

Nope, I feel the stock itself will be illiquid, might be worth holding in the long term, just not my kind of pond.

I'm however very interested to see how it goes the first few weeks.

#19
(03-01-2017, 04:45 PM)Purply Wrote: Nope, I feel the stock itself will be illiquid, might be worth holding in the long term, just not my kind of pond.

I'm however very interested to see how it goes the first few weeks.

@Purply I heard whispers that the IPO was around 10x oversubscribed. Will be interesting to see how it unfolds.
Entrepreneur with a marketing and sales background.

Register to invest via Easy Equities: http://bit.ly/2mDNXsT


#20
(03-01-2017, 05:00 PM)Dancshares Wrote: @Purply I heard whispers that the IPO  was around 10x oversubscribed. Will be interesting to see how it unfolds.

I can 100% see how that is possible since they only issues a limited amount of shares, like really LIMITED

Suppose that's what happens when you only trying to get R500 mil

#21
@DancShares is the episode out? i'd like to get more information on how to buy shares OTC

#22
(03-03-2017, 12:49 PM)Groovy Wrote: @DancShares is the episode out? i'd like to get more information on how to buy shares OTC

@Groovy nope only nxt week, will post here when its live
Entrepreneur with a marketing and sales background.

Register to invest via Easy Equities: http://bit.ly/2mDNXsT


#23
(03-03-2017, 03:57 PM)Dancshares Wrote: @Groovy nope only nxt week, will post here when its live

oh dope, @Dancshares I'm looking forward to it. thanks.

#24
Solar fund heads for the JSE

Solar fund heads for the JSE Promises stable returns and a 6% yield.

Now a solar energy fund run by UK investment firm Foresight will be listed on the JSE in early April, via the JSE’s fast track process.

The placement of a maximum of 250 million shares will be a private placement to institutions, with the minimum investment being R1 million.

The Foresight Solar Fund is the second largest of its kind in the UK, with a gross asset value of about £614.2 million (R9.8 billion), a net asset value of £360.2 million (R5.7 billion) and a market capitalisation on the LSE of about £369.93 million (R5 918 million), as of March 1 2017.

It is aiming to raise £50 million via both this listing and a rights offer and private placement of shares in the UK and a further £200 million during the course of the year.

#25
Seems Sea Harvest Group Limited will be listing as well.

The JSE has granted Sea Harvest a listing of up to 236 696 240 Shares in the “Farming, Fishing
and Plantation” sector of the Main Board of the JSE under the abbreviated name “SeaHarvst”
under share code: SHG and ISIN: ZAE000240198, from the commencement of trade on Thursday,
23 March 2017, subject to Sea Harvest having satisfied the Listings Requirements regarding the
minimum liquidity free-float requirements.

#26
Sea Harvest IPO has set a price range of R12 to R14.50.

#27
(03-06-2017, 01:54 PM)Outlook Wrote: Sea Harvest IPO has set a price range of R12 to R14.50.


What is the PE of Sea Harvest ?

#28
Did Pembury Group not list today?

#29
(03-09-2017, 09:25 AM)Miss Behavin Wrote: What is the PE of Sea Harvest ?

I am actually not sure to be honest.

I am not too impressed with the PLG group offer:

http://www.plgschools.co.za/images/PLGPr...us2017.pdf

#30
March 2017 sees the launch of another big IPO in the fisheries industry. Sea Harvest Group Limited is due to list on the 23rd of this month. Sea Harvest will join Oceana and Premier Food Fishing (listed last month) as the companies offering the most direct exposure to the fisheries industry.

Investing in AVI or Brimstone Investment Corporation offers exposure to I&J and Sea Harvest respectively, but you would be buying into diversified portfolios and would gain exposure to several companies within the food and beverage sector as well as the healthcare and insurance sectors.
Brief overview of Sea Harvest:
The Sea Harvest Group was established in 1964 and is a market-leading, vertically integrated fishing business with operations in South Africa and Australia. The group operates in Saldanha Bay and Mossel Bay, and the company acquired a controlling stake in Mareterram in Australia.
The principal business of the Group is fishing of MSC-certified Cape hake and Shark Bay tiger and king prawns, processing of the catch into frozen and chilled seafood, and the marketing of these products, locally and internationally. Sea Harvest is the leading frozen fish brand in South Africa in both retail (with a 36.7% market share) and food service, with strong consumer loyalty and brand equity.
The Group is one of the largest fishing rights holders in the South African Cape hake industry, with 28% of the hake TAC (total allowable catch) equating to 41,676 tons, and 56% of the prawn licences in Shark Bay, Western Australia.
What’s the reason for the IPO?
Management have given several reasons for the listing:
  1. Support management’s strategy of continuing to invest in the business, improve margins and grow organically
  2. Support the group’s vision of becoming a diversified global fishing company through value-creating acquisitions
  3. Clean up the balance sheet by repaying bank debt, preference shares, shareholder loans and creating a ’war-chest’ for growth
  4. Provide ongoing access to capital markets and the ability to use scrip as currency to support Sea Harvest’s growth strategy, both in South Africa and Australia
  5. Allows a mechanism for management and staff retention
Is it a profitable business?
It is worth noting that the fishing industry has very high barriers of entry due to the large capital costs, BEE requirements and government regulations. Sea Harvest has invested in 29 vessels (a mix of frozen and fresh) as well as three factories (which have an insurance value in excess of R1bn). It is very difficult for smaller players to compete with the bigger established companies, and therefore one could argue that profits are somewhat protected.
Furthermore, BEE is a critical part of the rights allocation process in South Africa, and Sea Harvest is one of the most empowered fishing companies. In a recent conversation, CIO Muhammad Brey was quite upbeat at the prospect of at least securing a similar quota during the 2020 allocation process given the company’s BEE credentials.
Furthermore, there has been an increased demand for seafood as we see a growing wellness trend and switch to healthy proteins with lower fat. This bodes well for the industry.
As a company, Sea Harvest has seen a steady growth rate in profitability. EBITDA increased 14%,15% and 19% respectively for 2014,2015 and 2016. Return on equity over the same period was 18%, 27% and 33%. The most profitable divisions are the export market (hence a rand hedge) and also local retail and food service. The diversified local and international customer base (no customer accounts for more than 10%) reduces the concentration risk as it is not overly dependent on one client.
Buying Sea Harvest shares will give you ownership of a company with a strong track record, established brand, solid assets and experienced management team. I believe the share would suit an investor who is relatively risk averse and looking for a company that will generate reliable earnings. Risks include the negative impact of a strong ZAR on exports, and the quota allocation.
Quote:Cheyne Anderson
Portfolio Manager and Securities Trader

Cheyne has spent the last 10 years working in London, holding numerous positions within Equity and Equity Derivatives at various Investment Banks. His main focus has been on South African and Emerging Markets and also gained good exposure to global equity markets and products. He completed both his BCom degree in Economics and his BCom. Honours in Financial Analysis and Portfolio Management at the University of Cape Town. After completing each of the rigorous exams, Cheyne became a CFA Charterholder in 2014.
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