Daily Equity Report |
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Welcome to the Sharenet Daily Equity Report
Issue: 24 January 2011 20:00
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Recipe to bake a JSE income cakeRound up all shares on the JSE that have grown earnings-per-share and/or dividends per share on a consistent, ever increasing, basis for at least the last 5 years (10 reporting periods including interims.) This gives you about 45 shares. Discard all shares that do not trade at least 10 times per day on average, to ensure decent liquidity. This leaves 27 shares. Now show those remaining that have fallen at least 10% from a very recent high, to ensure we are getting a bargain (margin of safety) and/or high yields. That leaves about 10 shares. Buy any of these shares that we issue trough reversal signals for. Repeat during each small market correction (buy on the dips.) Hold shares until we issue sell signals or flag a bear market/recession. Smile as the superior market-beating capital gains and dividend cheques come in for duration of bull market.
Now the JSE has currently corrected a puny 2.5% recently, but that is not to say that under the surface there are not such bargains about. Have a look at the "income cake" we baked only yesterday:
The "HI" column shows how much lower each share is trading than its more recent 3-month high (in other words, how much it has recently "corrected".) This is an idea of how much of a "bargain" is currently presenting itself. Up to 15 to 17% in some cases! It is not often we see this many consistent dividend/EPS growers popping up in this type of "bargain" screen. In fact we are lucky to see any of these shares, as in most instances these quality shares are bid up to the heavens and too expensive. Some of these issues are not "bargain basement" yet (look at the Powerstocks Valuation Metric, or PVM scores). Only LEW and GRF are registering more than 1 on the PVM, so they are the "well priced" shares when one looks at P/E, Price/Book and Price/sales figures together as a whole. There are a lot of retailers in this list, obviously the foreigners have been taking profits.
We are not saying now is necessarily the right time to be buying these shares. We have other tools in our JSW program that will issue the appropriate BUY signals for these shares based on their price action and that of the market as a whole. But the point is nobody ever regretted buying quality stocks after a nice sell-off such as this. Buying on a dip, coupled with safety of consistency of these companies to grow earnings and dividends is the recipe to bake an income cake. The trick is to buy a small basket of them. Some will perform better than others but our research shows the basket as a whole will comprehensively out-perform the market on both capital appreciation and dividend income.
For more innovative uses of fundamental data coupled with timing tools to deliver superior investing and equities trading results, see our JSW Videos.
Dwaine van Vuuren
Founder, PowerStocks Equity Research
www.powerstocks.co.za
Mon, 24 Jan 2011
South African government bonds recouped some losses on Monday as a selloff last week after the central bank left rates unchanged looked overdone. Full story |
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Brewers with big business in the
southern hemisphere look better able to cope with commodity cost
inflation due to their proximity to good barley harvests and
strong pricing power in key beer markets. Full storySouth Africa expects to seal a
deal with buyers in Saudi Arabia and India for about
100,000 tonnes of its surplus maize before the end of February,
a senior government official said on Monday. Full storyJapan's Kansai Paint said on Friday the board of Freeworld Coatings is intent on obstructing its takeover bid, the latest salvo in deal that looks likely to go hostile. Full story |
16h52 Anglo Platinum, the world's top platinum producer, on Monday halted operations at its Thembelani mine in South Africa after a worker. . . Full story | 14h16 South Africa expects to seal a deal with buyers in Saudi Arabia and India for about 100,000 tonnes of its surplus. . . Full story | 08h51 South Africa's rand firmed slightly against the dollar on Monday, recovering from near 8-week lows seen at the end of last. . . Full story | South Africa's competition watchdog has given unions an additional 15 days to present more evidence against Wal-Mart's $2.3 billion bid for. . . Full story |
Trading Statistics
Date | Adv. | Decl. | Unch. | Actives | Volume | Value | Trades | Orders |
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24/01/2011 | 94 | 230 | 82 | 406 | 211,283,569 | R12,683,063,663 | 105539 | 2206867 | 21/01/2011 | 197 | 127 | 94 | 418 | 257,065,098 | R13,566,702,840 | 99144 | 2327584 | 20/01/2011 | 99 | 260 | 71 | 430 | 386,059,557 | R19,506,207,802 | 133720 | 2465182 | 19/01/2011 | 151 | 202 | 73 | 426 | 252,854,737 | R12,601,434,370 | 98771 | 2083893 | 18/01/2011 | 163 | 168 | 88 | 419 | 228,486,023 | R10,914,439,075 | 95110 | 2077792 |
Spot Prices Name | Time | RP | Move | % Move | JSE Overall | 17:00 | 31869.06 | -270.95 | -0.84% | JSE Top 40 | 17:00 | 28545.01 | -263.73 | -0.92% | JSE Gold | 17:00 | 2571.04 | -23.72 | -0.91% | JSE Financial | 17:00 | 21594.40 | -84.76 | -0.39% | JSE Industrial | 17:00 | 31594.51 | -199.27 | -0.63% | JSE Indust 25 | 17:00 | 26200.77 | -162.75 | -0.62% | JSE Resource | 17:00 | 56623.97 | -728.15 | -1.27% | DJ Futures | 19:56 | 11908.00 | 86.00 | 0.73% | DJ Ind | 19:41 | 11960.24 | 88.40 | 0.74% | SP 500 | 19:06 | 1289.58 | 6.23 | 0.49% | Nasdaq | 19:06 | 2711.92 | 22.38 | 0.83% | FTSE 100 | 18:35 | 5943.85 | 47.60 | 0.81% | DAX | 18:56 | 7067.77 | 5.35 | 0.08% | CAC40 | 18:42 | 4033.21 | 15.76 | 0.39% | Nikkei | 08:56 | 10345.11 | 70.59 | 0.69% | Shanghai | 09:22 | 2696.72 | -19.23 | -0.71% | Hang-Seng | 10:26 | 23801.78 | -75.08 | -0.31% | All Ords | 07:36 | 4888.10 | 27.20 | 0.56% | NZSE 50 | 06:26 | 3352.66 | -.06 | -0.00% |
| | Name | Time | RP | Move | % Move | Gold | 19:59 | 1343.54 | -.75 | -0.06% | Gold/Rand | 19:58 | 9405.90 | -111.00 | -1.17% | Gold/R kg | 19:56 | 302238 | -2458 | -0.81% | Silver | 19:59 | 27.2550 | -.2750 | -1.00% | Platinum | 19:59 | 1813.50 | -7.15 | -0.39% | Palladium | 19:59 | 813.50 | -5.43 | -0.66% | R157 | 17:06 | 7.83 | -.04 | -0.51% | R204 | 17:06 | 8.52 | -.08 | -0.93% | Brent Crude | 19:56 | 96.50 | -.33 | -0.34% | Rand / Dollar | 19:59 | 7.0027 | -0.0768 | -1.08% | Rand / Pound | 19:55 | 11.1602 | -0.1102 | -0.98% | Rand / Euro | 19:55 | 9.5496 | -0.0818 | -0.85% | Rand / NZD | 19:58 | 5.3486 | -0.0208 | -0.39% | Rand / AUD | 19:55 | 6.9998 | 0.0062 | 0.09% | Yen / Dollar | 19:58 | 82.4200 | -0.2400 | -0.29% | Euro / Dollar | 19:55 | 0.7324 | -0.0022 | -0.30% | Dollar / Euro | 19:59 | 1.3644 | 0.0039 | 0.29% | Pound / Dollar | 19:40 | 0.6252 | 0.0002 | 0.03% |
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Click here for the Sharenet Spot Price page
Index Summary Index Name | RP | Move | % Move | Top 40 | 28,545.01 | -263.73 | -0.92% | Industrial | 31,594.51 | -199.27 | -0.63% | Mid Cap | 42,160.92 | -164.53 | -0.39% | Small Cap | 32,918.81 | -242.94 | -0.73% | Resource 20 | 56,623.97 | -728.15 | -1.27% | Industrial 25 | 26,200.77 | -162.75 | -0.62% | Financial 15 | 8,179.83 | -31.52 | -0.38% | Financial & Ind. 30 | 29,626.34 | -161.15 | -0.54% | All Share | 31,869.06 | -270.95 | -0.84% | Oil & Gas | 27,235.33 | -472.35 | -1.70% | Mining | 37,239.82 | -454.16 | -1.20% | Gold Mining | 2,571.04 | -23.72 | -0.91% | Platinum Mining | 81.86 | -1.24 | -1.49% | Oil & Gas Producers | 14,643.93 | -253.98 | -1.70% | Basic Materials | 31,305.11 | -381.59 | -1.20% | Chemicals | 13,551.36 | -46.22 | -0.34% | Forestry & Paper | 12,915.98 | -289.97 | -2.20% | Industrial Metals | 29,665.36 | -239.57 | -0.80% | Industrials | 29,503.06 | -67.67 | -0.23% | General Industrials | 77,155.65 | -198.52 | -0.26% | Consumer Goods | 25,680.59 | -378.41 | -1.45% | Automobiles & Parts | 2,807.93 | -45.29 | -1.59% | Household Goods | 147.12 | -2 | -1.32% | Health Care | 32,370.68 | -5.28 | -0.02% | Beverages | 80,423.56 | -1794.03 | -2.18% | Food Producers | 48,385.09 | -395.76 | -0.81% |
| | Index Name | RP | Move | % Move | Personal Goods | 387.22 | -2.50 | -0.64% | Consumer Services | 51,799.71 | -110.15 | -0.21% | General Retailers | 39,000.58 | 23.51 | 0.06% | Travel & Leisure | 4,097.96 | -40.80 | -0.99% | Media | 84,719.07 | 162.44 | 0.19% | Support Services | 2,608.58 | -17.10 | -0.65% | Telecommunications | 62,665.28 | 151.34 | 0.24% | Financials | 21,594.40 | -84.76 | -0.39% | Banks | 40,697.59 | -228.82 | -0.56% | Non-life Insurance | 30,796.35 | -181.87 | -0.59% | Life Insurance | 15,695.94 | -75.98 | -0.48% | General Financial | 2,360.24 | -7.83 | -0.33% | Technology | 20,690.80 | 24.54 | 0.12% | SHARIAH TOP40 | 3,212.33 | -34 | -1.06% | FTSE/JSE SHARIAH ALL | 3,278.61 | -34 | -1.03% | COAL MINING | 20,851.52 | -324 | -1.53% | FTSE JSE Fledgling | 4,731.17 | -17 | -0.37% | FTSE/JSE Alt X | 1,122.22 | -8 | -0.72% | SA LISTED PROPERTY | 374.10 | | -0.17% | CAPPED PROPERTY | 311.03 | | -0.13% | RESOURCE | 31,152.53 | -400 | -1.27% | DIVIDEND PLUS | 173.60 | -0 | -0.26% | FTSE/JSE RAFI 40 | 6,644.87 | -58 | -0.87% | Capped Top 40 | 14,832.18 | -131 | -0.88% | Capped All Share | 16,020.62 | -133 | -0.82% |
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Click here for the Sharenet Index Summary page
Latest Consensus Changes** Code | Company Name | Status | Updated | REI | REINET INVESTMENTS SCA | SELL | 20 Jan | EQS | EQSTRA HOLDINGS LTD | SELL | 20 Jan | TRU | TRUWORTHS INTERNATIONAL L... | HOLD | 20 Jan | AIP | ADCOCK INGRAM HLGS LD | HOLD | 20 Jan | MPC | MR PRICE GROUP LIMITED | HOLD | 20 Jan |
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Results Expected** Expected | Company Name | Fin. Date | 26 Jan 2011 | CBH | December 2010 (Interim) | 28 Jan 2011 | HUDACO | November 2010 (Final) | 31 Jan 2011 | CAPITAL | December 2010 (Final) | 02 Feb 2011 | GIJIMA | December 2010 (Interim) | 02 Feb 2011 | TOP FIX | December 2010 (Interim) |
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Recent Dividends** Share Name | Dec-Date | LDT | Pay-Date | Amount | FOORDCMPS | 11-01-20 | 11-02-04 | 11-02-14 | R 0.5385 | DIALOGUE | 11-01-13 | 11-02-18 | 11-02-28 | R 0.1238 | SBRJSEP11 | 10-12-15 | 11-03-04 | 11-03-15 | R 1.4100 | WINHOLD | 10-11-29 | 11-02-11 | 11-02-21 | R 0.1000 | UCS | 10-11-23 | 11-02-04 | 11-02-14 | R 0.0500 |
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Ex Div** Share Name | Dec-Date | LDT | Pay-Date | Amount | CLICKS | 10-10-21 | 11-01-21 | 11-01-31 | R 0.7570 | FREEWORLD | 10-11-24 | 11-01-21 | 11-01-31 | R 0.0700 | NAMPAK 6.5 | 10-12-09 | 11-01-21 | 11-01-31 | R 0.0650 | NAMPAK 6%P | 10-12-09 | 11-01-21 | 11-01-31 | R 0.0600 | REUNERT5.5 | 11-01-05 | 11-01-21 | 11-01-31 | R 0.0550 |
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Upcoming AGMs** Code | Company Name | Date | Status | ABLP | African Bank Investments Ltd | 25/01/2011 | Confirmed | ABL | African Bank Investments Ltd | 25/01/2011 | Confirmed | NCA | New Corpcapital Ltd | 26/01/2011 | Confirmed | SDH | SecureData Holdings Ltd | 26/01/2011 | Confirmed | RIN | Redefine Properties International Ltd | 26/01/2011 | Confirmed |
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