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 The Sharenet Daily 
Tuesday, 15 May 2012 - 20:00
Top News
SA Business
Company News
Company Results
World Markets (Spot Prices)
JSE Today
JSE Trading Statistics
Major Moves
Index Summary
Latest Consensus Changes / Results Expected
Recent Dividends / Ex Div
Upcoming AGMs
Stock Exchange News Service (SENS)

Long Term View: Regular Review

At Seed we have an investment process that is both simple and robust. By not overly complicating the process we attempt to consistently make investment decisions that will more often than not result in investment returns in excess of the targeted benchmark. We want to get the odds in our favour as often as possible and focus on the process rather than the outcome.

Before making any investment we ask ourselves three important questions:
1. Are we making this investment with a long term (i.e. at least 3 – 5 years) mindset?
2. Is there intrinsic value in this investment?
3. Is there a risk of permanent capital destruction in this investment?
An investment will only make its way into our portfolios if the answer is ‘Yes’ to the first two questions and ‘No’ to the third question.

Our portfolios are generally managed within strategic and tactical asset allocation frameworks, i.e. each portfolio has a stated benchmark and then mandated weighting limits for each asset class (e.g. benchmark local equity weighting of 50% with a maximum of 70% and a minimum of 30% in local equity, etc). We then make tactical decisions away from our benchmark (underweight or overweight) based on our research.

During a recent report back we were asked what our time horizon is for making these tactical asset allocation decisions. Referring back to the three questions we ask when making any decision it was quite simple to point out that we make all investments on a 3 – 5 year horizon. A key aspect that we had to point out was that while we make our decisions with a 3 – 5 year outlook, very few of our investments go unchanged over this period. On a monthly basis we update the valuations of each asset class, i.e. determine whether there is still intrinsic value in the investment, to determine whether we need to change the asset allocation of the underlying portfolios.

When valuing an asset class our assumption is that fair value will be reached in a straight line over 3 – 5 years. Markets naturally don’t move in a smoothed fashion and it is interesting to note how much the expected return from each of the asset classes can change over periods less than 12 months based on market movements. We take advantage of these opportunities to increase and decrease the weightings to the various asset classes.

The chart below is an extract of our equity valuation tool. The horizontal axis is the ALSI’s starting PE with the vertical axis the subsequent 5 year annual return. It is apparent that lower starting PE ratios equate to higher expected returns and vice versa. The red spot corresponds to the ALSI’s level in December 2010, and the yellow spot is at 30 September 2011. In the space of 9 months the market moved from being in overvalued territory to a level that was showing good signs of value.

By updating our valuation chart on a monthly basis we were able to take advantage of the opportunity presented in early October by increasing the allocation to local equities across all of our portfolios and in the Seed Flexible Fund in particular.

We trust that this gives some insight into the process followed at Seed. As has been discussed we also take a long term view, but ensure that we perform regular reviews.

Take care,

Mike Browne
021 9144 966

Tue, 15 May 2012
Top News
South Africa's rand extended losses to hit the year's weakest level against the dollar on Tuesday as risk sentiment soured further, though bonds held steady on support from good German growth numbers and a better than expected domestic auction.  Full story

South African stocks inched lower on Tuesday, as gold miners such as Gold Fields were hammered by a drop in the price of bullion, although losses were limited by a rise in heavyweights Naspers and MTN Group.  Full story
New French President Francois Hollande called for a European pact for growth to balance out German-driven austerity measures in his inaugural address on Tuesday, hours before taking his challenge to Chancellor Angela Merkel in Berlin.  Full story
A splintered Syrian opposition voted on Tuesday to keep a secular academic exile seen as a consensus builder as its top figure to further a quest for recognition from wary big powers in its struggle to unseat President Bashar al-Assad.  Full story
Ukraine, threatened with a political boycott of the European football championship it co-hosts next month over the jailing of opposition politician Yulia Tymoshenko, on Tuesday put off a ruling on her appeal until the tournament is under way.  Full story
Consumer shares led a modest rebound on Wall Street on Tuesday, after the S&P 500 fell for four of the past five sessions,. . .  Full story
European shares fell to their lowest closing level since the start of 2012 after attempts to form a Greek government collapsed, hitting heavyweight. . .  Full story
World stocks declined and the euro fell to a four-month low against the dollar on Tuesday after Greece said it would hold new. . .  Full story
Britain's top shares extended losses on Tuesday, led by the mining sector as the cloud looming over the euro zone darkened after Greek. . .  Full story

Gold eased below $1,560 an ounce on Tuesday after the failure of Greek politicians to form a government sent the single European currency. . .  Full story
U.S. stocks traded flat on Tuesday, erasing strong gains in the premarket session after news Greece will hold new elections put the debt-stricken country's. . .  Full story
U.S. stock index futures sharply pared gains on news Greece will hold new elections after political leaders failed to reach agreement on a. . .  Full story
European shares gave up earlier gains to fall to their lowest level since the start of 2012 after Greek politicians failed to agree. . .  Full story
SA Business
South Africa's Reserve Bank has approved the provision of a committed liquidity facility from which lenders in the country can draw from to meet Basel III liquidity coverage ratio requirements, it said on Tuesday.. . .  Full story

British short-term loans provider Wonga said it had chosen South Africa for its first step in international expansion after trials showed the country's consumers liked its online service.. . .  Full story
The rand pulled back from a four-month low against the dollar on Tuesday as stronger-than-expected growth numbers from Germany lifted sentiment, but the currency remained hostage to political uncertainty in Europe that has been constraining risk appetite.. . .  Full story
Company News
Further to the announcement on 7 February 2012, Old Mutual announced that it has completed the sale of Dwight Asset Management. . .  Full story
Afdawn advised shareholders that the company expects an increase in the earnings per share ("EPS") and headline earnings per share ("HEPS"),. . .  Full story
Shareholders are referred to the salient dates announcement released on SENS and published in the press on 2 May 2012 in. . .  Full story
Shareholders are advised that Ms K N Dhlomo has resigned as a non-executive director of TFG for personal reasons, with immediate. . .  Full story

Great Basin announced that its interim consolidated financial statements and Management Discussion and Analysis for the quarter ended March 31, 2012. . .  Full story
Accordingly, a review of the financial results for the year ending 30 June 2012 by management has indicated that the earnings. . .  Full story
Anglo announced the appointment to its board of Anne Stevens as a non-executive director, with immediate effect.. . .  Full story
Gijima advised shareholders in the company of the launch of an internal people optimisation strategy aimed at improving efficiency and reducing. . .  Full story
Company Results
Revenue increased to R5 billion (R4.5 billion). Gross profit declined to R775.2 million (R900.4 million) and operating profit decreased to R531.5. . .  Full story
Revenue for the interim period ended 31 March 2012 rose by 16% to R4.9 billion (2012: R4.2 billion), operating profit decreased. . .  Full story
Revenue interim results for the period ended 31 March 2012 fell to USD751 million (2012: USD938 million). EBITDA dropped to USD75. . .  Full story
Revenue increased by 11.1% to R12.7 billion (R11.4 billion). Gross profit was up 12.4% to R5.3 billion (R4.7 billion) and operating. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0033486.08-47.48-0.14%
JSE Top 4017:0029548.07-28.99-0.10%
JSE Gold17:002222.23-57.96-2.54%
JSE Financial17:0025007.79-98.63-0.39%
JSE Industrial17:0038060.90141.420.37%
JSE Indust 2517:0032098.77165.610.52%
JSE Resource17:0047583.10-345.94-0.72%
DJ Futures20:0012675.0014.000.11%
DJ Ind19:4512681.73-13.62-0.11%
SP 50020:001336.44-1.91-0.14%
FTSE 10017:355437.62-27.90-0.51%
All Ords08:424316.30-35.60-0.82%
NZSE 5007:463534.92-20.44-0.57%
NameTimeRPMove% Move
Gold/R kg20:0041414931220.76%
Brent Crude19:56111.85.600.54%
Rand / Dollar19:598.28890.08831.08%
Rand / Pound19:5513.23640.06220.47%
Rand / Euro19:5510.56040.03930.37%
Rand / NZD19:586.39340.01950.31%
Rand / AUD19:558.25600.08120.99%
Yen / Dollar19:5880.26400.44200.55%
Euro / Dollar19:550.78460.00520.67%
Dollar / Euro19:591.2739-0.0086-0.67%
Pound / Dollar19:550.62450.00350.56%

Click here for the Sharenet Spot Price page
The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 TRNSHEX  3255118.61.%2568049
2 LONAFRIC  1482217.46.%6200
3 MIXTEL  190105.56.%258808
4 AMECOR  22494.19.%1650
5 OCEANA  45971473.30.%25442
6 MUSTEK  625193.14.%2589
7 PERGRIN  1137332.99.%28579
8 TRUSTCO  10632.91.%166500
9 HOSP-B  400102.56.%1107
10 AMA  33582.45.%2579982
11 O-LINE  12932.38.%4490
12 BCX  470102.17.%14179
13 HCI  85691692.01.%18316
14 NASPERSN  455508501.90.%1343711
15 BARWORLD  85001321.58.%2254868
16 AFROX  1950301.56.%238935
17 BATS  412055821.43.%577048
18 URONE  2155301.41.%44415
19 REDEFINE  835111.33.%2530701
20 SASOL  361964711.32.%1471053

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Major Moves Down
SharenameSaleMove% MoveVolume
1 AQUARIUS  1220-128-9.50.%163217
2 EASTPLATS  247-20-7.49.%148493
3 CALGRO  405-30-6.90.%66735
4 KAP  305-20-6.15.%20823
5 CML  2730-162-5.60.%1313292
6 CERAMIC  10705-601-5.32.%1607
7 MMG  375-20-5.06.%2885
8 GRANPRADE  250-13-4.94.%2000
9 LONMIN  10850-513-4.51.%2049138
10 JSE  7600-351-4.41.%656040
11 ROLFES  335-14-4.01.%306800
12 DISTELL  8000-300-3.61.%10892
13 GFIELDS  9965-325-3.16.%2004800
14 BASREAD  1458-42-2.80.%26920
15 COAL  579-16-2.69.%701972
16 IMPERIAL  16020-430-2.61.%1617589
17 HULAMIN  648-17-2.56.%9745
18 GOLIATH  400-10-2.44.%200
19 DCENTRIX  482-12-2.43.%8441
20 ANGGOLD  26054-646-2.42.%1144646

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New Highs
SharenameSaleHighMove% MoveVolume
1 MIXTEL  190200105.56.%258808
2 BATS  41205413165821.43.%577048
3 SABMILLER  32853331441470.45.%1267565
4 ADCOCK  64056477-15-0.23.%383742

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New Lows
SharenameSaleLowMove% MoveVolume
1 AQUARIUS  12201220-128-9.50.%163217
2 EASTPLATS  247247-20-7.49.%148493
3 LONMIN  1085010680-513-4.51.%2049138
4 ANNUITY  510506-1-0.20.%101461
5 JUBILEE  1481410.292800

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Index Summary
Index NameRPMove% Move
Top 4029,548.07-28.99-0.10%
Mid Cap48,005.12-165.59-0.34%
Small Cap35,727.37-132.41-0.37%
Resource 2047,583.10-345.94-0.72%
Industrial 2532,098.77165.610.52%
Financial 159,427.08-45.49-0.48%
Financial & Ind. 3035,593.0887.020.25%
All Share33,486.08-47.48-0.14%
Oil & Gas 27,391.16356.421.32%
Mining 30,476.99-338.49-1.10%
Gold Mining2,222.23-57.96-2.54%
Platinum Mining53.29-.59-1.10%
GENERAL MINING7,839.65-62.52-0.79%
Oil & Gas Producers 14,727.72191.641.32%
Basic Materials 26,126.08-257.20-0.97%
Chemicals 14,849.42-38.84-0.26%
Forestry & Paper 13,440.2329.140.22%
Industrial Metals 29,274.47113.560.39%
Industrials 32,388.01-223.08-0.68%
General Industrials 88.78-.09-0.10%
Consumer Goods 33,305.76197.190.60%
Automobiles & Parts 5,638.50.000.00%
Household Goods180.02-1-0.62%
Health Care 42,594.7249.700.12%
Beverages 112.26.500.45%
Index NameRPMove% Move
Food Producers 60,573.55-189.55-0.31%
Personal Goods 470.825.401.16%
Consumer Services 65,520.14338.770.52%
General Retailers 53,895.62-240.24-0.44%
Travel & Leisure 3,763.9720.030.53%
Media 99.851.811.85%
Support Services 2,409.051.180.05%
Telecommunications 67,130.48473.300.71%
Financials 25,007.79-98.63-0.39%
Banks 48,183.56-309.96-0.64%
Non-life Insurance 42,647.61-68.91-0.16%
Life Insurance 19,591.84-60.49-0.31%
General Financial 2,273.00-24.08-1.05%
Technology 28,781.4343.090.15%
SHARIAH TOP40 2,954.10-8-0.27%
FTSE/JSE SHARIAH ALL3,075.77-9-0.30%
COAL MINING24,809.5890.04%
FTSE JSE Fledgling 5,413.64100.18%
FTSE/JSE Alt X 1,215.06474.02%
RESOURCE 26,244.65-194-0.73%
DIVIDEND PLUS192.99-2-0.82%
FTSE/JSE RAFI 406,957.29-13-0.18%
Capped Top 4015,606.86-10-0.06%
Capped All Share16,940.63-23-0.14%
JSE TABACO 5,265.28741.43%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
16 May 2012CAFCAMarch 2012 (Interim)
16 May 2012DATATECFebruary 2012 (Final)
16 May 2012RICHEMONTMarch 2012 (Final)
16 May 2012SALLIES-CDecember 2011 (Interim)
16 May 2012SANTOVAFebruary 2012 (Final)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
MAZOR12-05-1512-06-0112-06-11R 0.0160
CORONAT12-05-1512-06-0112-06-11R 0.9500
STEFSTOCK12-05-1512-06-2912-07-09R 0.1200
CAR12-05-1512-06-0812-06-18R 0.0800
NETCARE12-05-1412-07-1312-07-23R 0.2200
Ex Div**
Share NameDec-DateLDTPay-DateAmount
OCTODEC12-04-1912-05-1112-05-21R 0.7120
PREMIUM12-04-1912-05-1112-05-21R 0.6000
REBOSIS12-04-2512-05-1112-05-21R 0.4300
DCENTRIX12-04-1712-05-1112-05-21R 0.1953
PBT12-04-2512-05-1112-05-21R 0.0345

Upcoming AGMs**
CodeCompany NameDateStatus
CNLControl Instruments Group Ltd.15/05/2012Confirmed
GDOGold One International Ltd.16/05/2012Unconfirmed
BRNBrimstone Investment Corporation Ltd.16/05/2012Confirmed
BRTBrimstone Investment Corporation Ltd.16/05/2012Confirmed
RESResilient Property Income Fund Ltd.16/05/2012Confirmed

Stock Exchange News Service
15/05/201217:51NFGOVI/NFILBI/NFTRCI - NewFunds Collective Investment Scheme - Distribution and
15/05/201217:30CCO - Capital & Counties Properties PLC - Final dividend for the year ended 31
15/05/201217:15 Old Mutual Plc - Completion of the sale of Dwight Asset Management
15/05/201217:13 City Lodge Hotels Limited - Director`s dealings in securities
15/05/201217:05 New Europe Property Investments plc - Issue of equity, Total Voting Rights
15/05/201217:03ABN51 - Absa Bank Limited - New Financial Instrument Listing
15/05/201217:00 Blackstar Group SE - Announcement to be made by the AIM Applicant Prior to
15/05/201216:57 Tsogo Sun Holdings Limited - Trading Statement
15/05/201216:30 Dorbyl Limited - Disclosure Of Disposal Of Securities
15/05/201216:17 New Europe Property Investments plc - Belrom Settlement
15/05/201216:16 New Europe Property Investments plc - Trading Statement
15/05/201216:15 New Europe Property Investments plc - Availability of unaudited condensed
15/05/201216:14 New Europe Property Investments plc - Unaudited condensed consolidated
15/05/201216:13 Trans Hex Group Limited - Trading Statement
15/05/201216:00 Lonrho Plc - TR-1: Notification of major interest in shares
15/05/201216:00 African Dawn Capital Limited - Trading Statement
15/05/201215:53 PSG Group Limited - Acceptance and Exercise of Options by directors in
15/05/201215:43SCIB:ANGSTG - The Standard Bank Of South Africa Limited - Dividend announcement
15/05/201215:42SCIB:ANGSTF - The Standard Bank Of South Africa Limited - Dividend announcement
15/05/201215:30 Murray & Roberts Holdings Limited - Dealing in securities:
15/05/201215:27 Optimum Coal Holdings Limited - Proposed delisting of Optimum from the
15/05/201215:02 The Foschini Group (TFG) Limited - Board Changes - Resignation of non-
15/05/201214:30 Rare Holdings Limited - Changes to responsibilities of directors
15/05/201214:30 Great Basin Gold Limited - Confirm filing of financial results for the
15/05/201214:16GRT02 - Growthpoint Properties Limited - Interest Rate Reset: GRT02
15/05/201214:15 Mazor Group Limited - Audited condensed consolidated results for the year
15/05/201214:12 BHP Billiton Plc - BHP Billiton Plc - 2012 Global Metals, Mining &
15/05/201214:06 Rainbow Chicken Limited - Dealings in securities by a director of a major
15/05/201214:00 Northam - Update on smelter operations
15/05/201214:00 Kelly Group Limited - Unaudited interim results for the six months ended
15/05/201214:00 Convergenet Holdings Limited - Results of mandatory offer
15/05/201213:39 Sable Holdings Limited - The Disposal of an Investment Property and
15/05/201213:27 Litha Healthcare Group Limited - Dealings in securities by the Company
15/05/201212:58 Gooderson Leisure Corporation Limited - Withdrawal of cautionary
15/05/201212:40 Village Main Reef Limited - Dealing in securities by an associate of a
15/05/201212:30 Great Basin Gold Limited - Unaudited results for first quarter ended
15/05/201212:16BIIND - iNdwa Investments Limited - Listing of New Financial Instrument and
15/05/201210:46BINTR - Nitro 4 Securitisation Issuer Trust - Interest Rate Reset
15/05/201210:43 Distell Group Limited - Dealings in securities by company secretary
15/05/201210:42BINTR - Nitro 4 Securitisation Issuer Trust - Full Capital Redemption
15/05/201210:35 Steinhoff International Holdings Limited - Dealing in securities by
15/05/201210:21JCD - JCI Limited - Renewal of cautionary announcement
15/05/201210:00 Poynting Holdings Limited - Trading Statement
15/05/201209:57BIIND - iNdwa Investments Limited - Listing of Tap Issue
15/05/201209:36 Kibo Mining Plc - Memorandum of Understanding for Tanzanian Mine Mouth
15/05/201209:11BIIND - iNdwa Investments Limited - Listing of New Financial Instrument and
15/05/201209:06DV22 - Development Bank of Southern Africa Limited - New Financial Instrument
15/05/201209:05DV23 - Development Bank Of Southern Africa Limited - New Financial Instrument
15/05/201209:03BIRPIF - Resilient Property Income Fund Limited - Full Capital Redemption
15/05/201209:00BIRPIF - Resilient Property Income Fund Limited - Listing of New Financial
15/05/201208:58 Anglo American plc - Appointment of a non-executive director
15/05/201208:47 AngloGold Ashanti Limited - Anglogold Ashanti announces dealings in
15/05/201208:20CCO - Capital & Counties Properties PLC - Capco agrees GBP70 Million revolving
15/05/201208:19CCO - Capital & Counties Properties PLC - Capital & Counties Properties Plc
15/05/201207:30 Gijima - Gijima people optimisation process to improve efficiency
15/05/201207:10 British American Tobacco p.l.c.- Transaction in own shares
15/05/201207:10SYN918 - Synthesis Funding Limited - New Financial Instrument Listing
15/05/201207:08SSN006 - The Standard Bank of South Africa Limited - New Financial
15/05/201207:06 Alert Steel Holdings Limited - Results of general meeting and withdrawal
15/05/201207:05 Cargo Carriers Limited - Audited results for the year ended 29 February
15/05/201207:05 Investec Property Fund Limited - Change in Directorate - Appointed of Non-
15/05/201207:05 Coronation Fund Managers Limited - Reviewed interim results for the six
15/05/201207:05 Stefanutti Stocks Holdings Limited - Reviewed condensed consolidated

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