Jsedirect With Simon Brown

Making the CSEW40 SMART The CoreShares Equal Weight Top40 ETF (JSE code: CSEW40) has long been a favourite of mine, but now CoreShares want to change the ETF to a multi factor ETF under the code SMART. Those factors are; Value (portfolios of cheap shares outperform portfolios of expensive shares) Momentum (portfolios of recent share winners continue to win in the near term) Size (portfolios of small companies outperform portfolios of large companies) e.g. Equal weight Quality (portfolios high quality shares outperform poor quality shares) Low Volatility (portfolios of low risk shares outperform high risk shares) I chatted to Chris Rule of CoreShares asking why the changes? What will the new methodology be and what's its attraction? Lastly how will the process work - including voting by existing holders of the ETF. I initially was too thrilled with the changes as I like the equal weight methodology. But one of the key points for me is how many stocks I effectively get exposure to and this is illustrated by t

Simon Shares Eskom is "technically insolvent" and load shedding is back, why are we surprised? This was promised us when we had some in December. Bottom line it's a mess, costly to the economy and fixing Eskom is critical and very difficult. Watch the budget next week. EOH woes continue as the stock lost over 20% on Tuesday on the news that Microsoft had cancelled their partnership agreement. In a late SENS the company stated the revenue was not material, but investors have three questions they're asking themselves. 1// Can we trust EOH management ?? 2// How do you get a Microsoft partnership agreement cancelled ?? 3// Why is EOH management always so slow on shareholder communications ?? Curro (JSE code: COH) results are not bad, albeit HEPS +23% with a PE of some 40x is light and the stock is expensive. We are starting to see operational leverage as revenue is +19% and HEPS +23% and a 12c dividend. However debt has jumped almost 20%, but still manageable. Learner numbers increased 12% while Meridian has hal

Simon Shares A green January with financials the winners but 2019 is going to be a wild ride, especially in the lead up to the elections expected in May. Tax-free year end is end February, don't leave it for the last minute if you want money in this tax year ending 28 February. Budget on 20 February we'll see if we get any changes to the annual limits. Clover (JSE code: CLR) is delisting at 2500c. A great price considering it was around 1500c last year. I held this stock for a number fo years as I considered it to have great promise, but it never delivered on that promised so I exited. I have had some questions around two stocks I own, Santova* (JSE code: SNV) and Metro File (JSE code: MFL). Both are under share price pressure and both finding growth hard (latest results were OK, nothing special). The share price decline is a factor of liquidity and small stock sentiment. Right now if I was two sell my holdings in each the share price would fall about 10%, that is not normal. Add to that some large sellers (

Simon Shares Retailers, woe is worrid. Aside from Foschini (JSE code; TFG) and Lewis (JSE code: LEW) they have ranged from horrid to truly astoundingly horrid. Shoprite* (JSE code: SHP) has also put out a trading update to follow on from the so-so sales update and aside from some internal issues and Angolan hyperinflation the margins are also crumbling. EOH caught in a SENS from Eskom late on Monday, but took them until Wednesday morning to respond - simple too slow as the stock fell almost 15% on Tuesday. Ellies (JSE code: ELI) was a stock I was watching after they made almost 8c HEPS in the year ending April 2018. But now it seems they swung into a loss for the six months ending October and have a board that is falling apart. Taste (JSE code: TAS) announce they need some R580million and +5 years to at best reach break even? Minimalism: Can you eat it? The perks of being exactly average. Upcoming events Tax-free investing review, who ate the returns? * I hold ungeared positions. Where's Safcoin? So Safc

Simon Shares The rule of 72 (how long until your money doubles in value). Upcoming events Tax-free investing review, who ate the returns? Know your S12J Simon chats with Dino Zuccollo & Jonti Osher from Westbrooke Alternative Asset Management to really get to understand S12J.  The rules, risks, benefits, what to look out for and more. Subscriber to our feed here Subscribe or review us in iTunes JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

Simon Shares Learn to love a lazy market Upcoming events Tax-free investing review, who ate the returns? 2019 predictions show Every year March Ashton, Keith McLachlan and Simon Brown do a predictions show. Three wild and wooly predictions for the markets followed by a call on the Top40 and ZAR. Every show starts with a review of the previous years predictions and you'll find them here. Subscriber to our feed here Subscribe or review us in iTunes JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.

This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. Simon Shares Somebody capitulated on Metrofile* (JSE code: MFL) this morning. The stocks hit 160c, then 239c and is now 1c up at 220c and I picked up a few on a DY of over 10%. Over R4million has traded so far, so decent volume for this stock. SENS just out is that Sabvest (JSE codes: SBV & SVN) picked up just under half of the volume at 200c - 235c. They already own just over 10%. Ascendis Health (JSE code: ASC) continues to plummet as directors continue to be forced sellers. Just messy. Position your portfolio for 2019. Next show, 17 January 2019. * I hold ungeared positions. End of year portfolio review What was the returns of your different portfolios for 2018? Across the different strategies (trading, equity, ETF etc.). Did you beat your benchmark over 1, 3 and 5 years? Here's how to work out your returns by unitising your portfolios. https://justonelap.com/tracking-perfor

This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. Simon Shares Load shedding is back and reports are it's going to be around until maybe 2025 as Eskom needs R200billion. This hurts, we got our of recession yesterday with QonQ GDP growth at 2.2%, but we're going to struggle to grow without electricity. Importantly remember that the majority of the Top40 earnings are from outside of South Africa. So don't confuse the Top40 with the local economy. I missed the return of Pembury (JSE code: PEM) to trading on the JSE. A number of people have asked my view on the stock and it's a simple one. Avoid at all costs. They listed via attempted hype and management have only covered themselves in rubbish since then. Ideas are great but execution is what maters and this team can't execute (heck they can't even get results out in time). NaspersN (JSE code: NPN) results show Multi Choice is not the dead duck everybody claims. Sure some pressure on pr

This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. Simon Shares Taste (JSE code: TAS), nasty results and they're running out of money and still not profitable. I think a delisting is likely. Another Viceroy research report just landed, this time targeting NEPI Rockcastle (JSE code: NRP). The sock is off 14%. Most are decrying Viceroy, but Cy Jacobs, boss at 36One, Tweeted in support of the report. We are still in the process of analyzing the Viceroy Report on Nepi. Our initial view is that the report is compelling as the conclusions drawn appear to be justified. The report echos the concerns we had and continue to have about the entire Resilient Group. — Cy Jacobs (@Cy36ONE) November 28, 2018   Coronation (JSE code: CML) results assets under management (AUM) and hence profits and dividend slip slightly. But on a yield of some 9% and priced cheaper then in a decade relative to AUM - it looks cheap. Pepkor (JSE code: PPH) results.

This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. Simon Shares This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. Invicta (JSE code: IVT) HEPS at 2c with the SARS fine costing 187c in HEPS. Wescoal (JSE code: WSL) results knocking it out of the park with a PE and DY both around 4. Yet market hates small caps, so great quality and amazing price- but when / why will it move higher? Start building your list of small caps you like and want to own. But don't start buying just yet, this may take years. The Fat Wallet five concepts that'll make you rich Unpacking the preference share ETF )PREFTX) Upcoming events 06 December ~ Position your portfolio for 2019 Subscriber to our feed here Subscribe or review us in iTunes Structured product ~ Euro Stoxx 50 Gary Booysen & Viv Govender - RandSwiss JSE – The JSE is a registered trademark of the JSE Limited. JS

This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. Simon Shares Mid terms, Democrats sweep Congress while Republicans keep the Senate and now things get interesting. Markets will likely ignore this, remember the immediate sell off after Brexit and Trump victories and then the rally. But this removes Trump and the Republicans free hand on taxes etc. while also making it almost impossible to pass big laws as the two sides hate each other. Also Democrats in Congress are going to start digging into Trump from every direction. That said, markets will get over it as the US economy remains strong and profits continue higher. Importantly after the Smoot-Hawley Tariff Act** of the late 1920's trade was removed from Congress and given to the president. (**1928 the tariffs started on wool and sugar and ended up on over 800 products and was mentioned in the movie Ferris Bueller day off) The Fat Wallet Car edition Unpacking the Africa Palladium ET

This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. Simon Shares Calgro M3* (JSE code: CGR) results a horror. Sure some is due to the new IFRS, but a lot else hurting them right now and I am selling my last remaining shares having sold the bulk in December 2015 at over 2000c. Santova* (JSE code: SNV) results show stronger Rand hurting, but also very tough trading condition locally. I am not selling here. Horror update from Shoprite* (JSE code: SHP). Some due to negative inflation on products, they say "11,607 items in September remaining cheaper than they were a year ago". That hurts as costs rising. But they also had issues in their Gauteng distribution centre that made for stock issues in stores. Famous Brands* (JSE code: FBR) are a two part story. GBK in the UK remains an absolute mess and they're trying to get reductions on leases, an I assume they tried to sell it and failed. Locally they doing alright considering very tough tradi

This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. Simon Shares More delistings. I write about this for next weeks FinWeek. But it is expected and does indicate we're at (or near) a bottom with quality at really cheap valuations. Top40 just holding above 45,000 making us literally a few hundred points away from an official bear market locally. El Niño likelihood now at 70%, bad for food producers and consumers. I have found a website that tracks the likelihood, it Australian but weather don't care for borders.  Saudi Arabia oil chief says OPEC in ‘produce as much as you can’ mode and Brent drops to $76 after peaking at $84 recently. Bad news for Sasol* (JSE code: SOL) but coupled with ZAR at R14.40 potentially good news for consumers. Long4Life* (JSE code: L4L) results, they have cash and cash equivalents of R1.05bn, about 115c a share. Still mostly the old Holdsport business at 60% of revenue and 64% trading profit. Nu-World (JSE cod

This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. Simon Shares NO show next week (18 Oct 18), I am holidaying. Remember the chart of the Top40 I posted a few weeks back, showing the trading range? We broken the range again, but this time to the downside and we're not almost 15% off the November 2015 highs. Not the end of the world, yet. We do however need to bounce back into that range ASAP. There are now only 5 stocks with YTD gains within Top40: SOL 26%, AGL, 25%, BIL 23%, MND 11%, INL 5% — Andrew Todd (@andrewbtodd) October 10, 2018   Upcoming events 11 October ~ JSE Power Hour: Investing in listed property 18 October ~ JSE Power Hour: Maximising your tax-free investing  01 November ~ JSE Power Hour: When does the bear market arrive?  08 November ~ Mastering technical analysis  Subscriber to our feed here Subscribe or review us in iTunes Too small to matter Portfolio construction is way more than just deciding which s

Simon Shares This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider. September was such a rough month that the best performing full equity fund in South Africa returned -0.4% for the month. Not a single full local equity fund was positive. Upcoming events 11 October ~ JSE Power Hour: Investing in listed property 18 October ~ JSE Power Hour: Maximising your tax-free investing  01 November ~ JSE Power Hour: When does the bear market arrive?  Small cap pain Small caps, we love them because when they get going - they go. Really go. Ten baggers are a dime a dozen when things are hot and markets are running. But right now - not so much (see chart below) and here's why. Subscriber to our feed here Subscribe or review us in iTunes Firstly small caps are typically very SA Inc focused due to their smallness. Now this is not 100% true as there are stocks with offshore exposure, but generally the statement holds. That being said the economy is

Simon Shares This JSE Direct is proudly brought to you by IG, the specialists in CFD trading and a registered financial services provider.’ Alexander Forbes (JSE code: AFH) fires their CEO with zero f***s given. Nigeria making nice to MTN (JSE code: MTN) and Standard Bank (JSE code: SBK). Choppies (JSE code: CHP) snuck a late Friday SENS into the market stating that results would be late (again) and profits at least 20% lower (but no hard details as how much). No surprises that the market did not like and the stock got punished when we opened on Tuesday trading down at 25c. I never liked the stock and have repeatedly suggested investors stay away. Capitec* (JSE code: CPI) results were once again stellar with HEPS +20% and cost-to-income at 38%. The cost-to-income is edging higher, as expected, and was 36% last year. Likely will settle in the mid 40s. Active clients is now 10.5million. Top Broker awards were held on Tuesday evening. In the main category the winner was Standard Bank followed by Rand Swiss and

Simon Shares CPI 4.9% vs 5.2%, rates on hold? Naspers (JSE code: NPN) unbundling Multichoice. About R5.5billion profit so market cap some R55billion on 10x PE. That puts them into the Top40. The theory that Multichoice is dead is very misplaced. Aspen (JSE code: APN) gives another update to the market trying to help investors make sense of their results, and the stock is off +9% at just over R170. JSE is looking for feedback "In response to a range of corporate scandals, speculation and innuendo that have characterised South African financial markets over the past year". Details here  Cash Club: Start where you are Upcoming events 11 October ~ JSE Power Hour: Investing in listed property  Subscriber to our feed here Subscribe or review us in iTunes Managing fallen angels Those once unstoppable high flying stocks that have come back to earth with a thud, now what? We have a lot in our market right now; Aspen (JSE code: APN), Steinhoff (JSE code: SNH), MTN (JSE code: MTN), EOH (JSE code: EOH) and many

Simon Shares Metrofile* (JSE code: MFL) results were a mixed bag with the reduced dividend expected but they are essentially going to almost halve the cover ratio over two years and that is more aggressive than expected. Growth was modest, but the results commentary was even ore modest. Two analysts I know spoke to management and both came away very confident of the stock and its prospects. A lot of talk is about the move to digital and the cloud and firstly Metrofile is well positioned there and secondly I have been hearing about paperless office for over 30 years. ADvTech* (JSE code: ADH) purchase of Monash University looks great but expensive. On a PE of around 39x that is chunky. However will be able to remove a fair bit of costs plugging central services into existing infrastructure the company has. It also gives them degree levels offerings which is a great step and so while not cheap I like the deal. * I hold ungeared positions. Practical trading setups and rules with Petri Redelinghuys Understandin

Simon Shares MTN (JSE code: MTN). Woe is MTN, another $2billion for tax evasion. Is it a shake down? Maybe, maybe not. Truthfully we have no idea and it does cover the same period (2007-2015) of their previous Nigerian fine. I long ago sold my MTN shares and no interest in buying more. Steinhoff (JSE code: SNH) ex directors Jooste and La Grange have now both appeared before parliament and both blame everybody but themselves. Nice break out last week on the Top40, and then the retest and now we're back inside the range of 49-52k trading at 51,000 with ZAR at 15.46. Sure some if this is general EM issues but GDP data from Tuesday showing us in a recession is weighting heavy on markets. Where to next? Well let's see if 49k holds. Lots of talk about another drought locally in 2019, experts saying about 60% chance. Going to be rough, especially on food producer stocks (growing and makers). Practical trading setups and rules Tax Tuesday: Medical aid tax deductions OUTstanding money: The inflation monster Upcoming

The SAFcoin saga continues (my initial stay story here and the follow up with legal threats here), I hope this will be the last. Neil Ferreira finally offered to answer my concerns and I sent him a list of 43 questions Sunday afternoon and he returned them on Wednesday, you can find the questions and answers here. The tl;dr version; While SAFcoin did answer a lot of my questions and clear up some issues the key issues remain. So I continue to warn people to stay away. PTXTEN, been a rough, very rough, period for this ETF. Upcoming events 30 August ~ JSE Power Hour: Practical trading setups and rules 06 September ~ JSE Power Hour: Structuring your investment portfolio Subscriber to our feed here Sign up for email alerts as a new show goes live Subscribe or review us in iTunes JSE – The JSE is a registered trademark of the JSE Limited. JSEDirect is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The views expressed in this