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have held MMG for a while - fundamentally looks very good (imo) market is just not taking notice at the moment. Does not look like it will drop further -range bound at the moment. My feelings on the Bathmate is that it will eventually re rate higher, has to looking at heps growth (just hard to say when)- until then will collect the rather decent dividend. I expect that when it breaks out - say to  around 1300 - it will rapidly move higher and the consolidate for a while.

 

I like your thinking, I've been considering MMG for a while now. I think now is a good time to buy some.

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I got burned too many times trying to tackle the gold swings in my favor. sucks!

 

 

Any of you looking at Micromega MMG

 

I am thinking they might go to R14ish in the coming year?

 

Tell me about it, i just don't learn, I've just broken even in my gold holdings, drd & Sibanye. Now instead of running, I'm not, I'm a sucker for pain .

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have held MMG for a while - fundamentally looks very good (imo) market is just not taking notice at the moment. Does not look like it will drop further -range bound at the moment. My feeling is that it will eventually re rate higher, has to looking at heps growth (just hard to say when)- until then will collect the rather decent dividend. I expect that when it breaks out - say to  around 1300 - it will rapidly move higher and the consolidate for a while.

 

Are there any updates on the cautionary that they posted a while back ?

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Only 4 of the 16 stocks held are up today biggest hits Capitec and shoprite. Market does not like the SNH restructuring with shoprite, anyone have insight into that?

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African Rainbow Capital Investments (ARC) lists today.

 

ARC Investments

 

ARC Investments said in August that it would offer R4bn shares in an initial public offer that would give the company a market value of around R8,5bn. An interest of approximately 25% will be sold to three key investors - GIC in Singapore, the Public Investment Corporation (EMC) and Sanlam Private Wealth.

 

ARC says in a statement the additional shares it is currently issuing will increase the "gross yield of R1,9bn to R2,2bn".

 

In addition to the importance in Elandsfontein, its nine other largest investments are based on the percentage of the intrinsic value it represents:

  • Rain: A 20% stake in this broadband provider providing fast internet connections. It represents 31% of its portfolio.
  • Afrimat: An interest of 18,4% in the listed construction company. It represents 12% of its portfolio.
  • EOH: An interest of 1,7% in the listed information technology group. It represents 6% of its portfolio.
  • Alexander Forbes: An interest of 4.9%.
  • BKB: An interest of 20% in the agricultural company.
  • Acorn Agri: An interest of 15% in the agricultural company.
  • Afrigem Payprop: An interest of 46,4% in the information technology group.
  • Val de Vie Investments: An interest of 20% in the property developer.
  • Human states: An interest of 10% in the information technology company.

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Might have to sell out of COH - if penciled in EPS is around 55c - but even pushing the boat out and say 65c - and then say a P/E of 40 is fair - then a price of around R26 would be fair. Eish. There should be some support at R28.

 

An idea might be to switch from COH to PSG for a bit, but then ease back into COH from 28 - 23.

 

And/or move a bit to the more reasonably priced advtech - but even there HEPS only increased 6% in last TA - is that worth a pe of around 23 (penciling in EPS of 75c). Must be said though, it usually grows at 20% plus - so might be some one off issues. Then pe of 23 IS worth it.

 

Point is COH could re rate BADLY

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BTW - I have sold out of COH - roughly half went to advtech and the other half to PSG.

 

Have set an alert for COH if the price drops below 2800

 

Took a 3.5% haircut on COH (plus expense) but feel in this environment COH is just rated too highly.

 

That said, have not left the sector, or even, really the company ....

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Been watching Rolfes - wondering why it's dropping. I would have thought the strong rand would have helped it's imports - exports only account for 10% of revenue. EPS last year was around 53c, for the 1st 6 mnths already 38c.

 

So 53 x20% = 64c - 38 = 26c

 

So if they had done eps of 26c, they will have to put out a TS - which has not happened. Yet

 

But in 2015 they gave a TU 3 days before results.

 

They seem to be pretty good at growing earnings - so would not be surprised if a TA did not appear.

 

It trading on a p/e of (assuming current price of 353) of 9.2 ON JUST THE FIRST 6 MONTHS EARNINGS - that's pretty good, unless they made a huge loss.

 

So, as I am confused, will stick mu head in the sand, and hold till I see the results.

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What's on the go with Rolfes, bottom seems to have fell out?

Ouch RLF:

ShareData Online Alert Service

 

Company : Rolfes Holdings Ltd.

News Type : Official Announcement

 

Rolfes - trading statement and restatement

 

Shareholders are advised that during the finalisation of results for the year to 30 June 2017, accounting errors and understatements of impairments relating to prior periods have been identified by the new auditors and the acting CFO that are considered material. Accordingly the results for the year ended 30 June 2016 and the interim results for the six months ended 31 December 2016 will be restated.

 

The understatements of impairments and accounting errors primarily relate to the Botswana water business and the previously manufactured lead chrome pigment product ranges disposed of since plant closure and during the interim period at a negative margin. In addition the Group's Silica mining operations were discontinued in the current reporting period as a result of the useful life of mine and the economic environment and accordingly the current year results will be stated to show continuing and discontinued operations separately.

 

The directors believe that normalised headline earnings per share from continuing operations of between 47.8c and 56.3c is a meaningful measure for evaluating the group's operational performance.

 Normalised earnings are defined as earnings from continuing operations excluding non-recurring items and once off adjustments.

 

Dividends

A final gross cash dividend of 4c per share will be considered by the Board making a total of 8c per share for the 2017 financial year (2016: 6c per share).

 

Release of results

The results for the 2017 financial year and the restated results for the 2016 financial year are expected to be published by the end of September 2017.

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What's on the go with Rolfes, bottom seems to have fell out?

 

Basically, they have had to restate figures as their previous figures are crap. Really bad, should be sanctioned IMO. Plus, obviously, some sellers knew.

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Moneyweb Investor JSE Rating - Tawana 3rd

 

What a cursory examination of the JSE’s swallows and salamanders of 2017 will tell you is that Naspers is not the best-performing stock of the year.

 

Having said that, it’s not difficult to see how its growth has been the biggest contributor to the 10.5% that the JSE All Share has advanced this year, well ahead of the 2.7% gain in 2016.

 

Looking at the swallows, what is clear is that there is no rising tide lifting all boats. Retailers are not trending, nor are quick service restaurants - once a favourite with investors. Instead we have a mixture of cheap shares that are being rerated; shares where there is corporate action or the possibility of corporate action; and shares with a good growth story, substantiated by recent trading updates.

 

And where there is a rising tide, for instance resurgent commodity prices are driving improved earnings, companies like Anglo Gold, Lonmin and East Plats are having a torrid time.

 

 

The year’s biggest winners and losers on the JSE

The salamanders are far more numerous than the swallows and provide visible evidence of an economy in distress. While small caps are feeling the sharpest losses, it is evident that mid caps, at the heart of the economy, are in distress.

 

Common themes among the salamanders include: exposure to the sluggish domestic economy, increased exposure to government business where margins are lower and getting paid is a dream, rand strength, and overpriced shares being derated as a result of slowing earnings growth.

 

The slow economy cannot be blamed for all ills. A theme that runs through some of these companies is poor management and poor decision-making. Arguably the likes of Taste, DAWN (prior to management changes), Basil Read, Stellar, Advanced Health and even Brait fall into this category.

 

A company that has run hard is not necessarily a buy at current levels. And the same goes for a company that has rerated, such as AdaptIT. Many of these companies are now offering value. It truly is a stock pickers market.

Swallows

Swallows

#1 & #4 African Phoenix

 

African Phoenix, formerly African Bank Investments (Abil), resumed trade in February after shares were suspended in August 2014 following curatorship proceedings instituted against African Bank. African Phoenix’s only operating entity is Stangen, once the insurance arm for African Bank.

 

The company’s assets include R1.8 billion in cash, a small insurance company called Stangen, and a R24 billion tax loss.

 

The share performance since listing has been driven by a rerating. “The shares were suspended at very low values and the business rescue practitioners did a good job preserving value,” says Andre Steyn, a director of Steyn Capital and one of the biggest investors in Phoenix.

 

The combined market value of the ordinary shares and preference shares is about R1.35 billion, well below the cash value of the business.

 

The reason for the discount lies in the fact that preference shareholders hold most of the capital in the business, but don’t get dividends; ordinary shareholders have most of the votes and have a say over the dividend rights of preference shareholders. For this reason, preference shares are trading well below par value of R85.

 

“This is an investment holding company with a classic shareholders’ conflict of interest dilemma that needs to resolved, and some capital allocation decisions to make,” he says.

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#2 Ecsponent

Ecsponent invests in companies that offer a range of financial services in South Africa, Botswana, Swaziland and Zambia. The company reported profit growth of over 200% and a surge in cash flow from operations in the 15 months to March. This strong growth is necessary to service the interest payments on its R5 billion preference share programme. While management is comfortable with its funding structure, it also plans to look at third party debt facilities to reduce the cost of capital.

 

#3 Tawana Resources

The JSE- and ASX-listed exploration firm hit pay dirt last year with the acquisition of several projects that will see it jointly explore for lithium and other minerals in Western Australia. Initial results have proven positive. Lithium is used in the batteries of electric cars.

#7 Murray & Roberts (M&R)

The restructured and refocused M&R anticipates improved results in the new financial year having transformed itself into a multinational engineering and construction group. It has settled its disputes related to the construction of the Gautrain, announced the closure of the Middle East business, and the increase of its stake in the Bombela Concession Company from 33% to 50%.

 

#8 Naspers

A lot has been said and written about Naspers. The bottom line is that its holding in Tencent is worth more than Naspers, as a result investors acquire the other assets for nothing. Tencent is well run and is growing strongly. Chairman Koos Bekker may have the last laugh when some of the unlisted e-commerce ventures grow wings.

#5 Montauk

The US company which produces renewable gas and electricity from landfill sites, and was spun out of HCI in 2014, reported a 65% rise in revenue on the back of a 10% increase in renewable gas volumes in the year to March. The company declared a 39.5c per share maiden dividend after pre-tax profits rocketed 579% to $15.7 million.

 

#6 Verimark

This company should be renamed very cyclical. That said investors won’t complain about results for the year to February where profits after tax increased by 184.7% to R37.3 million. It is worth noting though that even after a 90% share price rise for the year, the share is still trading at 2012 levels.

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# 9 Greenbay Properties

Greenbay is listed on the JSE, with a primary listing on the Stock Exchange of Mauritius. It owns retail assets in Slovenia and Portugal and owns stakes in listed assets from the US to Australia. The company raised R4 billion via a bookbuild process in August and in the process advised shareholders that it expects 25% growth in dividends per share for the 2018 financial year.

#10 Mix Telematics

Mix provides fleet and asset management software to customers in more than 120 countries. It is listed on the JSE and on the New York Stock Exchange in the form of American Depositary Shares. In April the company announced it had won a new global key account to provide premium fleet solutions with an anticipated rollout of 20 000 units over a possible 40 countries. 

 

In May it announced a share repurchase plan to buy back up to 12.9% of its shares through open market purchases. Such plans can indicate that the board believes its shares are undervalued

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Anyone owning GPL?

 

It has been a tough ride this year, what is the collective opinion, is this company done?

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