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 The Sharenet Daily 
Tuesday, 06 August 2013 - 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)


Dividends can be defined as the distribution of a portion of the earnings generated by a company. Private investors who need to receive a stream of income can invest in high dividend paying shares and investors looking for value biased shares will be on the lookout for companies with high dividend yields (dividend divided by price). For these, and other, reasons dividends are widely scrutinised by the public and both deserve further investigation.

Starting with the former; the widely used logic that higher dividend paying companies are the best choice when investing for income can, to a certain extent, be countered by the theory of dividend irrelevance. This theory states that if a dividend can be “home-made” (shares sold to create a dividend like cash stream) the presence of a dividend does not necessarily mean the investor is better off receiving a dividend.

Consider the example of Mr A, who needs an income of R 5 000 and can either hold 1 000 shares in Company X or Company Y. Both of the shares trade at R 50 and Company X declares a R 5 dividend, while Company Y doesn’t declare a dividend. When Company X goes ex-dividend (after the payment of the dividend) the value of the share should decrease by the amount of the dividend (R 5), as the cash is being paid to the investor from the company’s balance sheet.

If Mr A invests in Company X, his shares would now be worth R 45 000 and he would have received a R 5 000 dividend. If he invests in Company Y he can sell 100 shares and receive the cash flow of R 5 000. Because this transaction has no effect on the share price, his shareholding would be worth R 45 000 (900 shares @ R 50). The chart below reflects the position that Mr A would be in under both scenarios.

This is a simple illustration that Mr A should be in the same position if he receives a dividend or sells his shares (before the impact of any taxes). While the payment (or non payment) of dividends can be an important signal from management, a high dividend yield (or even the presence thereof) shouldn’t be the only determining factor when shares are bought.

Looking briefly at the latter use of dividends mentioned above, a high dividend yield is a sign that the company is generating good earnings (and importantly cash flow) relative to the current share price, which is a big positive. For value investors, the presence of a high dividend yield is often an important metric, as the investor gets rewarded with a good yield, rather than being solely reliant on selling the share at a higher price. Essentially there is a margin of safety. While a high historic yield is sought after – investors need to also ensure that the dividend is sustainable – i.e. that they will receive a similar (or better) dividend in the future.

At Seed we understand that a high dividend yield serves as a good indicator that the company deserves a closer look from a fundamental perspective. We therefore use dividend yield (both historic and forward) as a filter when looking at the investment universe. Those shares that offer investors a good yield are put on a short list, and can ultimately end up in our private client portfolios.

Kind regards,

Stefan Keeve

021 914 4966

Tue, 06 Aug 2013
Top News
South Africa's Treasury sold a total 2.35 billion rand of its 2031, 2037 and 2048 government bonds on Tuesday.  Full story

Net interest income for the interim period ended 30 June 2013 increased by 6.9% to R10.3 billion (2012: R9.6 billion). Profit from operations rose by 8.4% to R5.5 billion (2012: R5 billion), while profit attributable to equity holders of the parent was higher at R3.9 billion (2012: R3.5 bill  Full story
India said a group of militants from Pakistan killed five of its soldiers in an ambush along the disputed border in Kashmir on Tuesday, an accusation that threatens to derail efforts to resume peace talks.  Full story
Fonterra, the world's largest dairy exporter, came under fire from the New Zealand government, farmers and financial regulators for its handling of a food contamination scare that has triggered product recalls and spooked parents from China to Saudi Arabia.  Full story
European shares fell on Tuesday, hit by declines in financial heavyweights HSBC and Munich Re, and some traders predicted more weakness as investors look. . .  Full story
U.S. stocks slid to session lows on Tuesday following comments from Dennis Lockhart president of the Atlanta Federal Reserve Bank, that the central. . .  Full story
Britain's blue-chip share index fell in thin, volatile trade on Tuesday as a selloff in mining stocks, led by Fresnillo, more than offset. . .  Full story
Wall Street sagged on Tuesday, pulling back further from recent records as investors found few reasons to buy, but the euro was supported. . .  Full story

U.S. stocks fell sharply on Tuesday, with the Nasdaq briefly dipping more than 1 percent, as investors booked profits from a rally that. . .  Full story
Gold extended losses to a 2-1/2-week low on Tuesday, as data showing economic growth on both sides of the Atlantic dented the metal's. . .  Full story
U.S. stocks slipped at the open on Tuesday, following the year's lowest-volume session, as traders sought new catalysts to extend or sell the. . .  Full story
European shares nudged higher on Tuesday as signs of a faster-than-expected recovery in the UK and German economies helped the FTSE 100 and. . .  Full story
SA Business
South Africa's rand was steady against the dollar on Tuesday, with market participants saying it could benefit from a successful government bond auction later in the session.. . .  Full story
South Africa's Merafe Resources reported a 30 percent decline in first-half earnings on Tuesday after the ferrochrome producer was hit by a write-down related to a potential asset sale.. . .  Full story

Nedbank on Tuesday became the latest South African lender to strike a note of caution about the worsening financial health of consumers in Africa's largest economy, after its debt costs jumped. . .  Full story
Nigeria is gradually opening up to Islamic finance, a move that could bring non-interest banking to over 80 million Muslims and develop one of Africa's fastest-growing consumer and corporate banking sectors.. . .  Full story
South Africa's Nedbank Ltd said on Tuesday it had entered into an alliance with Bank of China to target trade and investment between Africa and the world's second-largest economy.. . .  Full story
Company News
Shareholders were advised that Stefstocks' integrated annual report, incorporating the group audited financial statements for the year ended 28 February 2013 has been posted and emailed to shareholders today, 6 August 2013. Notice of annual general meeting Notice was given. . .  Full story
Nedbank Group Ltd. ("Nedbank "), the majority-owned South African banking subsidiary of Old Mutual, released its interim results for the six months ended 30 June 2013 today, 6 August 2013. Highlights included: *Headline earnings increased 13,3% to R3 914 million *Diluted headline earnings per. . .  Full story
Company Results
Revenue remained stable at R51.2 million (June 2012: R51.2 million). Results from operating activities decreased to R13.9 million (June 2012: R29.1. . .  Full story
Revenue increased to R1.5 billion (R1.2 billion). EBITDA declined to R210.2 million (R262.9 million). Net attributable profit slumped to R33.5 million. . .  Full story
Net interest income increased to R9.9 billion (R9.2 billion). Operating income rose to R14.1 billion (R13.2 billion). Profit attributable to ordinary. . .  Full story
Resilient has changed its year-end from 2013 onwards from December each year to June each year, therefore there are no comparatives.. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0041573.71-230.22-0.55%
JSE Top 4017:0037129.66-205.16-0.55%
JSE Gold17:001173.67-46.53-3.81%
JSE Financial17:0030459.76-117.60-0.38%
JSE Industrial17:0055014.54-29.82-0.05%
JSE Indust 2517:0048210.6217.690.04%
JSE Resource17:0046483.59-780.96-1.65%
DJ Futures20:0015472.00-122.73-0.79%
DJ Ind20:0015511.87-100.26-0.64%
SP 50020:001696.90-10.24-0.60%
FTSE 10017:356604.21-15.37-0.23%
All Ords08:455088.00-5.80-0.11%
NZSE 5007:504575.50-13.98-0.30%
NameTimeRPMove% Move
Gold $19:591283.75-19.80-1.52%
Gold R20:0012728.96-90.37-0.70%
Gold R/kg20:00409236-3362-0.81%
Silver $19:5919.5620-.1200-0.61%
Platinum $19:581426.00-23.00-1.59%
Palladium $19:59722.30-8.90-1.22%
Brent Crude20:00107.93-1.02-0.94%
Rand / Dollar19:599.91970.08440.86%
Rand / Pound19:5515.21560.14160.94%
Rand / Euro19:5513.19900.15431.18%
Rand / NZD19:597.84850.12611.63%
Rand / AUD19:558.92300.13361.52%
Yen / Dollar19:5997.6510-0.6110-0.62%
Euro / Dollar19:590.7513-0.0028-0.37%
Dollar / Euro19:591.33080.00480.36%
Pound / Dollar19:550.6503-0.0007-0.11%

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 ALERT  1392117.80.%41650
2 FORTRESSA  15901218.24.%394510
3 ADAPTIT  319196.33.%442233
4 MASONITE  30001505.26.%493
5 POYNTING  11054.76.%50000
6 AME  70003004.48.%108
7 FONEWORX  21094.48.%81000
8 RANGOLD  21594.37.%37367
9 PALLINGHT  20573.54.%219011
10 BCX  527173.33.%1351742
11 ESORFRANK  16053.23.%1911914
12 VALUE  598183.10.%1485
13 DAWN  771212.80.%23540
14 GRANPRADE  370102.78.%4654558
15 RBPLAT  51091262.53.%18214
16 BLUETEL  830202.47.%126417
17 PUTPROP  600142.39.%220
18 NASPERSN  8349018902.32.%1422786
19 PSG  64521452.30.%40516
20 RICHEMONT  100142142.18.%10293214

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Major Moves Down
SharenameSaleMove% MoveVolume
1 EHSV  1500-150-9.09.%15140
2 ATLATSA  262-19-6.76.%24027
3 AFGRI  460-30-6.12.%149036
4 WITSGOLD  800-50-5.88.%5000
5 FINBOND  129-8-5.84.%655396
6 HARMONY  3387-209-5.81.%784554
7 URONE  2460-140-5.38.%318
8 OCEANA  9170-455-4.73.%71383
9 JASCO  105-5-4.55.%71415
10 PAN-AF  190-9-4.52.%921180
11 GFIELDS  5300-245-4.42.%1393013
12 BASREAD  693-32-4.41.%301555
13 GIJIMA  103-4-3.74.%27003
14 SASFIN  3275-125-3.68.%5169
15 JDGROUP  2792-106-3.66.%396948
16 TRNSHEX  325-12-3.56.%160048
17 WBHO  15050-550-3.53.%124530
18 TRUWTHS  8026-274-3.30.%961130
19 ANGGOLD  12198-414-3.28.%841552
20 ANGLO  21580-720-3.23.%2715079

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New Highs
SharenameSaleHighMove% MoveVolume
1 ADAPTIT  319319196.33.%442233
2 ESORFRANK  16016853.23.%1911914
3 RICHEMONT  10014101102142.18.%10293214
4 SPURCORP  33193475561.72.%93149
5 PINNACLE  26622669341.29.%138623
6 CML  68546875741.09.%438674
7 MONDILTDP  14895150681380.94.%90119
8 MONDIPLCP  1488915434770.52.%303764
9 MPACT  26982761100.37.%625841
10 MTN  1914019189400.21.%3749128
11 FAMBRANDS  989910350-249-2.45.%201473

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New Lows
SharenameSaleLowMove% MoveVolume
1 BASREAD  693650-32-4.41.%301555
2 JDGROUP  27922792-106-3.66.%396948
3 AVENG  26002506-70-2.62.%3123787
4 COAL  1471410.198456

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Index Summary
Index NameRPMove% Move
Top 4037,129.66-205.16-0.55%
Mid Cap55,179.12-366.79-0.66%
Small Cap45,798.41-18.08-0.04%
Resource 2046,483.59-780.96-1.65%
Industrial 2548,210.6217.690.04%
Financial 1511,425.41-71.25-0.62%
Financial & Ind. 3050,950.75-28.66-0.06%
All Share41,573.71-230.22-0.55%
Oil & Gas 35,302.18-135.46-0.38%
Mining 27,870.20-551.51-1.94%
Gold Mining1,173.67-46.53-3.81%
Platinum Mining41.94-.73-1.71%
GENERAL MINING8,056.30-145.93-1.78%
Oil & Gas Producers 18,981.33-72.83-0.38%
Basic Materials 24,734.63-426.31-1.69%
Chemicals 21,945.92-6.12-0.03%
Forestry & Paper 24,343.26113.070.47%
Industrial Metals 23,523.4937.690.16%
Industrials 40,803.21-207.32-0.51%
General Industrials 123.19-.33-0.27%
Consumer Goods 52,283.55-55.08-0.11%
Automobiles & Parts 8,484.93174.372.10%
Household Goods177.13-3-1.66%
Health Care 66,789.84-390.23-0.58%
Beverages 166.08-2.02-1.20%
Index NameRPMove% Move
Food Producers 71,433.28-1477.39-2.03%
Personal Goods 1,000.1621.372.18%
Consumer Services 9,230.7919.130.21%
General Retailers 57,971.47-1253.63-2.12%
Travel & Leisure 5,606.04-26.02-0.46%
Media 182.544.102.30%
Support Services 2,672.6710.810.41%
Telecommunications 9,088.3415.010.17%
Financials 30,459.76-117.60-0.38%
Banks 50,364.58-147.21-0.29%
Non-life Insurance 48,351.82370.070.77%
Life Insurance 29,173.35-209.25-0.71%
General Financial 2,825.91-11.22-0.40%
Technology 41,978.6385.230.20%
SHARIAH TOP40 3,453.64-40-1.14%
FTSE/JSE SHARIAH ALL3,579.54-39-1.09%
COAL MINING19,365.79-75-0.38%
FTSE JSE Fledgling 5,558.78-2-0.03%
FTSE/JSE Alt X 987.58-8-0.81%
RESOURCE 25,366.93-429-1.66%
DIVIDEND PLUS202.74-2-1.04%
FTSE/JSE RAFI 408,147.53-73-0.89%
Capped Top 4019,634.03-100-0.51%
Capped All Share21,053.02-114-0.54%
JSE TABACO 6,806.84-38-0.55%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
08/08/2013AQUARIUSJune 2013 (Final)
08/08/2013AQUARIUSCVTJune 2013 (Final)
08/08/2013EXXAROJune 2013 (Interim)
08/08/2013MONDILTDJune 2013 (Interim)
08/08/2013MONDILTDPJune 2013 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
SBR00305/08/201325/10/201305/11/2013R 1.3700
LIB-HOLD01/08/201323/08/201302/09/2013R 2.1200
INTUPROP01/08/201311/10/201319/11/2013R 0.0500
ZURICH SA01/08/201323/08/201302/09/2013R 1.0000
FIRSTRANDB-P01/08/201316/08/201326/08/2013R 3.2025
Ex Div**
Share NameDec-DateLDTPay-DateAmount
OANDO29/07/201301/08/201330/08/2013R 0.7500
NIVEUS25/06/201301/08/201312/08/2013R 0.1800

Upcoming AGMs**
CodeCompany NameDateStatus
SOVSovereign Food Investments Ltd.07/08/2013Confirmed
ANDAndulela Investment Holdings Ltd.07/08/2013Confirmed
ANDPAndulela Investment Holdings Ltd.07/08/2013Confirmed
MMLMetmar Ltd.07/08/2013Confirmed
MMLPMetmar Ltd.07/08/2013Confirmed

Stock Exchange News Service
06/08/201317:31NEW EUROPE PROPERTY INVESTMENTS PLC - Aupark Zilina Acquisition
06/08/201317:30NEW EUROPE PROPERTY INVESTMENTS PLC - Unaudited condensed consolidated financia...
06/08/201317:19INDWA INVESTMENTS LIMITED - New Listing - IND344
06/08/201317:17HARMONY GOLD MINING COMPANY LIMITED - Fatality at Harmony's Kusasalethu mine
06/08/201317:14AUSTRO GROUP LIMITED - Dealings in securities by a director and by an associate ...
06/08/201317:14Capitec Bank Limited - Interest Rate Reset - CBL10 and CBL21
06/08/201317:10INVICTA HOLDINGS LIMITED - Change in remuneration committee chairman
06/08/201317:03JSE LIMITED - Index Change Advice - Allied Technologies Deletion
06/08/201316:20VUKILE PROPERTY FUND LIMITED - Dealing in securities by a director and the compa...
06/08/201316:02VUNANI LIMITED - Correction to unaudited condensed consolidated results
06/08/201315:55TSOGO SUN HOLDINGS LIMITED - Dealing in securities by a director
06/08/201315:44BIOSCIENCE BRANDS LIMITED - Application for liquidation opposed and further caut...
06/08/201315:10BRIMSTONE INVESTMENT CORPORATION LD - Further Trading Statement
06/08/201314:35MARSHALL MONTEAGLE PLC - Appointment of Non-Executive Director
06/08/201313:30STEFANUTTI STOCKS HOLDINGS LTD - Abridged Audited Condensed Consolidated Results...
06/08/201313:30ESORFRANKI LIMITED - Cautionary announcement
06/08/201313:23INTERWASTE HOLDINGS LIMITED - Trading Update
06/08/201313:00SABMILLER PLC - MillerCoors grows above premium portfolio in challenging quarter
06/08/201312:38RESILIENT PROPERTY INCOME FUND LTD - Preliminary Summarised Audited Consolidated...
06/08/201312:25INDWA INVESTMENTS LIMITED - Correction of Interest Rate - IN02Q
06/08/201312:24INDWA INVESTMENTS LIMITED - CANCELLATION OF S334803 New Intrument Listing - IN02...
06/08/201312:19SPANJAARD LIMITED - Dealings in securities by a director
06/08/201312:10SPANJAARD LIMITED - Dealings in securities by a director
06/08/201312:05TELKOM SA SOC LIMITED - Dealings in securities by a director
06/08/201312:00INVICTA HOLDINGS LIMITED - Directors dealing in securities
06/08/201311:41WINHOLD LIMITED - Announcement to Shareholders Regarding the Proposed Disposal o...
06/08/201311:33VUNANI LIMITED - Unaudited condensed consolidated results for the six month peri...
06/08/201311:32VUNANI LIMITED - CANCELLATION OF S334816 Unaudited condensed consolidated result...
06/08/201311:32STANDARD BANK OF SOUTH AFRICA LD - SCIB: The Standard Bank Of South Africa Limit...
06/08/201311:20FIRSTRAND BANK LIMITED - Full Capital Redemption - FRS78
06/08/201311:00EFFICIENT GROUP LIMITED - Changes to the board of directors of EFG
06/08/201309:30BARLOWORLD LIMITED - BAW9 - Interest Rate Reset
06/08/201309:01RESILIENT PROPERTY INCOME FUND LTD - Interest Rate Reset - RES18
06/08/201309:00ARGENT INDUSTRIAL LIMITED - Dealing in securities by a director
06/08/201308:02OLD MUTUAL PLC - Nedbank Group Limited Interim Results 2013
06/08/201308:01NEDBANK LIMITED1 - Reviewed Condensed Consolidated Interim Financial Results fo...
06/08/201308:01CASHBUILD LIMITED - Fourth Quarter Operational Update FY2013
06/08/201308:00NEDBANK GROUP LIMITED - Reviewed Financial Results for the six months ended 30 J...
06/08/201307:48SPANJAARD LIMITED - Dealings in securities by a director
06/08/201307:30MERAFE RESOURCES LIMITED - Reviewed Interim Results for the six months ended 30 ...
06/08/201307:17BRITISH AMERICAN TOBACCO PLC - Transaction in own shares
06/08/201307:15VUNANI LIMITED - Unaudited condensed consolidated results for the six month peri...
06/08/201307:05BSI STEEL LIMITED - Director's dealings in securities

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