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 The Sharenet Daily 
Tuesday, 10 November 2015 - 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)

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Seed Weekly - Income versus Wealth

We live in a world of instant information, media hype and instant gratification. Advertising, movies, and television shows show lifestyles of “normal people” with hyper consumption and extravagant lifestyles, unfortunately these lifestyles are out of sync with a “normal person’s” income. Because of this people have become confused between income and wealth.

As a financial planner I get to see the full picture of a person’s finance that includes their income, assets, and liabilities. In the last 20 years I have seen that there is often very little correlation between a person’s income and the amount of net assets “wealth” that they have managed to accumulate. I have just finished reading “The Millionaire Next Door” (Stanley and Danko) which confirms my experience. This book highlights the difference between income generation and wealth creation and I highly recommend it.

One of the main problems with wealth creation is that it is very difficult to see how much a person is worth. People do not walk around with their balance sheet strapped to their arm or drive a balance sheet. Juxtaposed to this, consumption is shown to the world, fancy cars, fancy holidays, over mortgaged houses, expensive watches and clothes are all symbols of “wealth” and I often find that people who show the most signs of “wealth” are actually hyper consumers with high levels of income but with a much lower net asset value than what could be expected given their age and income levels.

Whilst there are many reasons for this lack of wealth accumulation, it basically boils down to spending all, and sometimes more than, your income. No matter how high your income is, if you are spending all of your income you will never become wealthy. We need to also define wealthy, my definition is to look at your net asset value versus your annual expenditure. Once you have more than twenty times your annual expenditure in net assets, you can start considering yourself to be wealthy. If somebody’s assets are worth R 10 000 000 but spends R 5 000 000 per year, that person is not wealthy, but if somebody’s assets are worth R 5 000 000 and their annual expenditure is R 200 000 per year then you could definitely consider them to be wealthy.

In my experience there are two major stumbling blocks to wealth creation. Firstly, and most importantly, people failing to budget. If you do not control your expenditure and you spend everything or more than you earn, you will never be able to accumulate wealth. For those of us unlucky enough not to win the lottery, we have to save and invest wisely to create wealth. Please also note that wealth is your net asset value which means that having assets with large liabilities linked to them do not create wealth.

They say that the road to hell is paved with good intentions, unfortunately the road to financial freedom has many potholes. One of the most common “potholes” is that people (especially younger people) start off with good intentions of saving but because their income is low the amount that they are saving is not much. When they look at the growth on their investment after a year or two they become despondent with the “terrible growth” and rather just spend their money.

This is especially so when a monthly amount is invested because people tend to forget that only one instalment has been invested for the entire investment term. So if you invested R 100 per month and achieved a 10% return it would still only be R 1 267 at the end of the year. Unfortunately people get disillusioned with the ‘low” returns in the initial stages of the investment and do not let the effect of compound interest help them grow their wealth. Psychologically 10% on R 10 000 000 is a lot more than 10% on R 1 000, we do however tend to forget that it is still 10%.

The first port of call is to draw up a budget that sets sufficient income aside to build a portfolio that will help you reach financial independence. The second, arguably harder, part is to stick to this plan. I have generally found that writing down a budget (rather than having numbers in your head) and being accountable to someone (whether it’s your husband/wife or financial planner) helps people stick to said budget and ultimately reach their goal of financial independence.

Kind Regards,

Barry Hugo

Tel +27 21 914 4966
Fax +27 21 914 4912
Email info@seedinvestments.co.za

Seed is hiring: Visit the Seed Analytics LinkedIn profile to view vacancies.


Tue, 10 Nov 2015
Top News
Local markets The JSE All Share finished 1.51% lower on Tuesday, with 3.23% losses in resources leading the local bourse downwards.  Full story

South Africa's September manufacturing output beat expectations of a second successive contraction, rising sharply on Tuesday, largely after electricity supply stabilised over the period. Manufacturing output rose 0.9 percent year-on-year in September compared to a revised -0.3 per  Full story
Britain's prime minister appealed to doubters at home and in other EU capitals on Tuesday to back his attempt to reform the 28-member bloc as a chance to boost prosperity rather than write it off as "Mission Impossible".  Full story
Myanmar democracy champion Aung San Suu Kyi made it clear on Tuesday that she was ready to defy the powerful military's attempts to clip her wings, as fresh results from Sunday's historic election showed her party heading for a resounding win.  Full story
Winds and rain from the second rare cyclone to hit Yemen in two weeks have killed 13 people, including three children, on Yemen's Socotra island, the fisheries minister said on Tuesday.  Full story
SA Business
Online taxi-hailing service Uber has agreed a 200 million rand ($14 million) deal with South African vehicle finance provider WesBank to rent cars to drivers who can't afford to buy them, the companies said on Tuesday.. . .  Full story
South Africa's rand staged a modest recovery on Tuesday after tumbling to a new record low, helped higher by a pause in the dollar's run to a seven-month peak.. . .  Full story

The sugar-growing South African province of KwaZulu Natal is the driest it has been in over a century, according to data provided on Tuesday by the South African Weather Service, underscoring the scale of a drought scorching Africa's most advanced economy.. . .  Full story
South Africa cut its year to March 2016 tax revenue target by 0.7 percent to reflect a lower forecast for economic growth, the revenue agency said on Tuesday.. . .  Full story
Company News
Shareholders are advised that despite efforts to complete the Business Rescue Proceedings of the company within three months of the date. . .  Full story
Wescoal shareholders (˘Shareholders÷) are referred to the declaration announcement released on SENS on Thursday, 5 November 2015 and in the South. . .  Full story
The Hudaco group (˘Hudaco÷) has instituted legal proceedings against Bravura Equity Services Pty Ltd. (˘BES÷) (part of the Bravura group (˘Bravura÷). . .  Full story
Shareholders of the company (˘Shareholders÷) are referred to the announcement released on the Stock Exchange News Service of the JSE Ltd.. . .  Full story

Business Report highlighted that Afrimat is seeking to increase its revenue from outside South Africa from almost zero- 50 percent in the next five to seven years to reduce the country risk in South Africa. Andries van Heerden, chief executive indicated that Afrimat was well positioned to capitalise on its strategic initiatives, which included continued growth from an excellent asset base, selective acquisitions and Greenfield expansion projects.. . .  Full story
Company Results
Revenue decreased by 2.6% to R1003.2 billion (R1030.1 billion). Gross profit was up 19.6% to R302.0 million (R252.6 million) and operating. . .  Full story
Revenue for the interim period rose to R40.0 billion (R37.5 billion).Operating profit was higher at R10.2 billion (R9.4 billion). Profit attributable. . .  Full story
Revenue for the period rose to R3.9 billion (R3.7 billion) and gross profit increased to R549.1 million (R487.9 million). Operating profit. . .  Full story
Revenue increased by 8.3% to R2.8 billion (2014: R2.6 billion), whilst operating profit declined by 13.6% to R410 million (2014: R475. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0052565.50-805.73-1.51%
JSE Top 4017:0047201.94-763.02-1.59%
JSE Gold17:00917.42-7.74-0.84%
JSE Financial17:0044018.84-688.07-1.54%
JSE Industrial17:0080045.82-994.95-1.23%
JSE Indust 2516:5071931.65-1178.74-1.61%
JSE Resource17:0030332.24-1012.60-3.23%
DJ Futures09/1117776.00-67.000.00%
DJ Ind19:5817703.43-27.05-0.15%
SP 50019:582075.06-3.52-0.17%
FTSE 10017:406267.16-28.00-0.44%
All Ords07:415157.70-22.60-0.44%
NZSE 5007:286002.81-45.08-0.75%
NameTimeRPMove% Move
Gold $19:591089.63-1.99-0.18%
Gold R19:5715525.14-79.76-0.51%
Gold R/kg19:58499737-980-0.20%
Silver $19:5914.3990-.1540-1.06%
Platinum $19:59899.28-12.30-1.35%
Palladium $19:59595.10-2.90-0.48%
Brent Crude08:0247.34-.08-0.17%
USD / ZAR19:5914.2505-0.0406-0.28%
GBP / ZAR19:5521.4993-0.0762-0.35%
EUR/ ZAR19:5515.2483-0.1239-0.81%
NZD/ ZAR19:579.3135-0.0235-0.25%
AUD / ZAR19:5510.0250-0.0451-0.45%
USD / JPY19:59123.13100.04800.04%
EUR / USD19:591.0704-0.0051-0.47%
GBP / USD19:591.5108-0.0007-0.04%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 CENRAND  1161514.85.%1486
2 DELTA  320206.67.%7100
3 RAUBEX  1680805.00.%1190483
4 FORTRESSB  35521524.47.%676001
5 MIXTEL  313134.33.%178770
6 METROFILE  485204.30.%106935
7 ADVHLTH  250104.17.%100485
8 ALARIS  15553.33.%91372
9 FAIRVEST  17552.94.%39807
10 ANSYS  10832.86.%350909
11 TRENCOR  46001202.68.%221866
12 NAMPAK  2177512.40.%3835587
13 CIL  3379792.39.%413910
14 GRINDROD  1400312.26.%1123820
15 SOVFOOD  770151.99.%14568
16 AFRIMAT  2703481.81.%332650
17 SASFIN  5798981.72.%5467
18 PPC  1600271.72.%2652735
19 ILLOVO  1790301.70.%327087
20 DRDGOLD  24441.67.%1281471

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Major Moves Down
SharenameSaleMove% MoveVolume
1 LONMIN  217-109-33.44.%6297496
2 RENERGEN  1400-150-9.68.%8
3 KUMBAIO  4999-505-9.18.%1112008
4 STELLAR  245-24-8.92.%2320555
5 ANGLO  10536-885-7.75.%5239500
6 KIBO  108-9-7.69.%29150
7 GLENCORE  2280-180-7.32.%1763342
8 TRNSHEX  230-18-7.26.%8621
9 HULAMIN  630-49-7.22.%293528
10 TRUSTCO  450-35-7.22.%155186
11 VALUE  275-21-7.09.%60837
12 ARM   5120-380-6.91.%1271235
13 ARCMITTAL  629-42-6.26.%1412141
14 YORK  225-15-6.25.%13765
15 EFFICIENT  470-30-6.00.%1000
16 PALLINGHT  490-30-5.77.%1583853
17 GROUP-5  2125-125-5.56.%37692
18 TREMATON  380-20-5.00.%65393
19 NIVEUS  2425-125-4.90.%4064
20 BARWORLD  7780-386-4.73.%1334000

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New Highs
SharenameSaleHighMove% MoveVolume
1 FORTRESSB  355236231524.47.%676001
2 AFRIMAT  27032734481.81.%332650
3 CAPPROP  17201738251.47.%6198907
4 HUGE  42042051.20.%119025
5 ANCHOR  1580160060.38.%201983
6 CURRO  43764499-10-0.23.%125752

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New Lows
SharenameSaleLowMove% MoveVolume
1 LONMIN  217180-109-33.44.%6297496
2 KUMBAIO  49994900-505-9.18.%1112008
3 ANGLO  1053610409-885-7.75.%5239500
4 VALUE  275275-21-7.09.%60837
5 ARCMITTAL  629612-42-6.26.%1412141
6 ALTRON-P  650640-30-4.41.%2312364
7 ANGLOPLAT  2057520264-920-4.28.%503295
8 MRHLD  933927-40-4.11.%654459
9 AVENG  304302-12-3.80.%2135659
10 BALWIN  928900-32-3.33.%302008
11 GRANPRADE  475475-15-3.06.%969559
12 OMNIA  1480514330-280-1.86.%105835
13 SHOPRIT  1401013913-213-1.50.%2145968
14 Trellidor  555550-5-0.89.%26200
15 IMPLATS  35193468-31-0.87.%4566258
16 GROWPNT  24812452-13-0.52.%10057615
17 ADCORP  24332410-11-0.45.%184522
18 ATT  20982081130.62.%416573
19 PPC  16001496271.72.%2652735

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Index Summary
Index NameRPMove% Move
Top 4047,201.94-763.02-1.59%
Mid Cap67,199.83-729.24-1.07%
Small Cap57,361.62-558.78-0.96%
Resource 2030,332.24-1012.60-3.23%
Industrial 2571,931.65-1178.74-1.61%
Financial 1516,287.05-319.57-1.92%
Financial & Ind. 3075,780.18-1065.86-1.39%
All Share52,565.50-805.73-1.51%
Oil & Gas 9,650.69.000.00%
Mining 18,039.21-609.60-3.27%
Gold Mining917.42-7.74-0.84%
Platinum Mining16.19-.62-3.69%
GENERAL MINING5,396.95-200.29-3.58%
Oil & Gas Producers 51,889.95.000.00%
Basic Materials 19,224.36-623.68-3.14%
Chemicals 21,927.05-805.59-3.54%
Forestry & Paper 52,224.13-1010.49-1.90%
Industrial Metals 3,648.56-322.19-8.11%
Industrials 43,674.02-775.62-1.74%
General Industrials 160.33-4.16-2.53%
Consumer Goods 78,836.44-612.80-0.77%
Automobiles & Parts 6,499.00-67.93-1.03%
Household Goods577.16-5-0.82%
Health Care 9,582.98-185.75-1.90%
Beverages 291.33-1.44-0.49%
Index NameRPMove% Move
Food Producers 9,098.97-47.71-0.52%
Personal Goods 1,132.40-16.68-1.45%
Consumer Services 17,845.16-68.79-0.38%
General Retailers 8,458.54-160.25-1.86%
Travel & Leisure 6,037.6622.860.38%
Media 456.701.430.31%
Support Services 2,820.69-2.39-0.08%
Telecommunications 8,088.52-297.44-3.55%
Financials 44,018.84-688.07-1.54%
Banks 7,286.48-76.67-1.04%
Non-life Insurance 55,577.16775.881.42%
Life Insurance 40,031.08-1322.56-3.20%
General Financial 4,839.84-74.37-1.51%
Technology 55,711.80-1143.57-2.01%
SHARIAH TOP40 3,071.71-91-2.87%
FTSE/JSE SHARIAH ALL3,284.87-86-2.56%
COAL MINING6,767.13-287-4.07%
FTSE JSE Fledgling 6,553.67-65-0.98%
FTSE/JSE Alt X 1,538.52-0-0.02%
CAPPED PROPERTY 578.77-0.69%
RESOURCE 16,384.35-553-3.27%
DIVIDEND PLUS196.08-4-2.14%
FTSE/JSE RAFI 408,943.85-221-2.41%
Capped Top 4025,003.12-424-1.67%
Capped All Share26,657.48-409-1.51%
JSE TABACO 10,404.81-27-0.25%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
11/11/2015CILAugust 2015 (Final)
11/11/2015INVICTASeptember 2015 (Interim)
11/11/2015IVT PREFSeptember 2015 (Interim)
11/11/2015MAZORAugust 2015 (Interim)
11/11/2015REINETSeptember 2015 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
AFRIMAT09/11/1504/12/1514/12/15ZAR 0.1600
LEWIS09/11/1515/01/1625/01/16ZAR 2.1500
VODACOM09/11/1527/11/1507/12/15ZAR 3.9500
BRAIT PREF09/11/1527/11/1507/12/15ZAR 4.8723
RAUBEX09/11/1527/11/1507/12/15ZAR 0.3600
Ex Div**
Share NameDec-DateLDTPay-DateAmount
REMGRO17/09/1506/11/1516/11/15ZAR 2.5900
STEINHOFF08/09/1506/11/1516/11/15ZAR 1.6500
ECSP C223/10/1506/11/1516/11/15ZAR 1.0356
ECSP C23/10/1506/11/1516/11/15ZAR 1.0356
ECSP A23/10/1506/11/1516/11/15ZAR 0.7671

Upcoming AGMs**
CodeCompany NameDateStatus
JSCJasco Electronics Holdings Ltd.10/11/2015Confirmed
JSCPJasco Electronics Holdings Ltd.10/11/2015Confirmed
NHMNortham Platinum Ltd.11/11/2015Confirmed
WBOWilson Bayly Holmes - Ovcon Ltd.11/11/2015Confirmed
WBOPWilson Bayly Holmes - Ovcon Ltd.11/11/2015Confirmed

Stock Exchange News Service
10/11/201517:43INDLUPLACE PROPERTIES LIMITED - Abridged Consolidated Audited Results For The Ye...
10/11/201517:29SPANJAARD LIMITED - Trading Statement
10/11/201517:27MTN GROUP LIMITED - Disclosure of beneficial interests in securities of MTN Grou...
10/11/201517:24EVRAZ HIGHVELD STEEL & VANADIUM LTD - Further report in terms of Section 132(3)(...
10/11/201517:00OLD MUTUAL PLC - Form 8.3 Disclosure
10/11/201516:52OLD MUTUAL PLC - Form 8.3 - Public Opening Position Disclosure
10/11/201516:45THE NITRO SECURITISATION 5 ISSUER TRUST - Release of Annual Financial Statements
10/11/201516:30M FITEC INTERNATIONAL LIMITED - Abridged Pre-listing Statement
10/11/201515:40NEW GOLD ISSUER LIMITED - Additional Listing of NewGold Palladium Debentures
10/11/201515:33NEW GOLD ISSUER LIMITED - NGPLT-Partial De-listing of NewGold Platinum Debenture...
10/11/201515:18WESCOAL HOLDINGS LIMITED - Combined claw-back and rights offer finalisation anno...
10/11/201515:18ADVTECH LIMITED - Director's Dealings
10/11/201515:15MUSTEK LIMITED - No change statement and notice of annual general meeting
10/11/201514:45METROFILE HOLDINGS LIMITED - Directors dealings in securities
10/11/201514:00DELTA AFRICA PROPERTY HOLDINGS LIMITED - Unaudited consolidated interim financia...
10/11/201513:40IVUZI INVESTMENTS LIMITED - Release of Annual Financial Statements
10/11/201513:40INDWA INVESTMENTS LIMITED - Release of Annual Financial Statements
10/11/201513:00BLUE TITANIUM CONDUIT (RF) LIMITED - New Financial Instrument Listing Announceme...
10/11/201512:30TISO BLACKSTAR GROUP SE - Transaction in own shares
10/11/201512:18SA CORPORATE REAL ESTATE LIMITED - Results of the notice of written resolution o...
10/11/201512:15CAXTON CTP PUBLISHERS & PRINTERS LD - No Change and Annual General Meeting Annou...
10/11/201512:09HUDACO INDUSTRIES LIMITED - Initiation of legal proceedings by Hudaco for the re...
10/11/201512:00ASPEN PHARMACARE HOLDINGS LIMITED - Dealing in securities by directors and by di...
10/11/201511:40ABSA BANK LIMITED - ASN096 - New Financial Instrument Listing
10/11/201511:01CARGO CARRIERS LIMITED - Cautionary Announcement
10/11/201510:46PETMIN LIMITED - Report on proceedings at the general meeting
10/11/201510:38TASTE HOLDINGS LIMITED - Dealings in Securities by a Director pursuant to the Ta...
10/11/201510:00MPACT LIMITED - Dealings in securities by the Mpact Limited Incentive Scheme Tru...
10/11/201509:32LETSHEGO HOLDINGS LIMITED - Finalisation of a transaction for Letshego to become...
10/11/201509:00CAPITAL & COUNTIES PROPERTIES PLC - Trading Update
10/11/201508:30EASTERN PLATINUM LIMITED - News Release
10/11/201508:27ERIN ENERGY CORPORATION - Erin provides operational update and 3rd quarter 2015 ...
10/11/201507:05CORONATION FUND MANAGERS LIMITED - Reviewed preliminary condensed consolidated f...
10/11/201507:05MASSMART HOLDINGS LIMITED - Sales Update for the 45 weeks to 8 November 2015

Click here for more SENS news