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 The Sharenet Daily 
Tuesday, 01 December 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 - Investment Greats ? David Dreman

David Dreman is considered one of the greatest contrarian investors of our age. Born in Canada in 1936, David went on to graduate from University in 1958, after which he worked as director of research for Rauscher Pierce, senior investment officer with Seligman, and senior editor of the Value Line Investment Service. In 1977, he founded his first investment firm, Dreman Value Management, and has ever since served as its president and chairman. Since its founding, the firm has consistently stayed true to the contrarian style of investing.

Dreman is seen as a pioneer in the field of contrarian investment strategies and behavioural finance. Over the past 30 years, he has been at the forefront of research into contrarian value investing and behavioural finance, proving that over virtually every time period measured, stocks which were out of favour (as reflected by their price/earnings multiple), did significantly better than stocks considered to have more favourable outlooks. "I paraphrase Lord Rothschild: ‘The time to buy is when there's blood on the streets.'"

It is reported that Dreman came to contrarian investing the hard way. In 1969, Dreman, a junior analyst at the time, was following the crowd as the shares of companies with negligible earnings skyrocketed. He is quoted as saying, "I invested in the stocks du jour and lost 75% of my net worth." As a result of that painful lesson of “following the herd”, he became fascinated with how psychology affects investor behaviour and became a contrarian investor. "Psychology is probably the most important factor in the market – and one that is least understood."

"One of the big problems with growth investing is that we can't estimate earnings very well. I really want to buy growth at value prices. I always look at trailing earnings when I judge stocks."

"I buy stocks when they are battered. I am strict with my discipline. I always buy stocks with low price-earnings ratios, low price-to-book value ratios and higher-than-average yield. Academic studies have shown that a strategy of buying out-of-favour stocks with low P/E, price-to-book and price-to-cash flow ratios outperforms the market pretty consistently over long periods of time."

The Dreman fund family was eventually bought over by other companies. In 2009 his firm chose to hold on to banking stocks as they were crashing during the great financial crisis - in line with his contrarian value investing philosophy. As a result, his firm was removed from management of his flagship DWS Dreman High Return Equity Fund by the board of Deutsche Bank, citing weak performance.

This “deep value” contrarian approach to value investing can result in a hefty debate. It should be said that the buyer must know what he is are buying and not simply buy stocks after their ratios – quality has proven to be an all important factor for mitigating risk of capital loss. "If you have good stocks and you really know them, you'll make money if you're patient over three years or more."

David Dreman has written numerous books over his lifetime. His first book, "Contrarian Investment Strategy: The Psychology of Stock Market Success" (1980) is an investment classic. Other notable books include "The New Contrarian Investment Strategy" (1982) and "Contrarian Investment Strategies: The Next Generation (1998). He has also authored numerous scholarly investment articles in the Journal of Investing, Financial Analysts' Journal and The Journal of Financial Behaviour. Dreman has also written the highly respected "The Contrarian" column in Forbes magazine for some 22 years.

Kind regards,

Lourens Rabè

Sources: Investopedia.com, Wikipedia.com, Dreman.com

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

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Tue, 01 Dec 2015
Top News
Local markets Although gold mining shares rose 0.69% on Tuesday, losses across almost all other sectors saw the JSE All Share fall 0.14% by close of day.  Full story

South Africa's Exxaro Resources said it is still in discussions with Eskom about the joint closure of a coal mine, after the power utility demanded a lower price for the fuel it uses to generate electricity. "Exxaro is only a mining right holder and Eskom owns the Arnot Mine movabl  Full story
British Prime Minister David Cameron said on Tuesday his government had unanimously agreed a motion on air strikes against militants in Syria, portraying the ruling party as united on an issue that has split the Labour opposition.  Full story
Chronic problems with a faulty rudder system and the way pilots tried to respond were major factors in the crash of an Indonesian AirAsia <AIRA.KL> jet last year that killed all 162 people on board, investigators said on Tuesday.  Full story
A Philippine court found a U.S. Marine guilty of killing a transgender woman on Tuesday, jailing him for six to 12 years in a case that has reignited debate over the American military presence in its former colony.  Full story
SA Business
The rand fell to an all-time low against the greenback despite broadbased dollar weakness on Tuesday, with traders citing nervousness ahead. . .  Full story
South Africa's new vehicle sales rose by 0.4 percent year-on-year to 51,256 units in November, data from the trade and industry. . .  Full story
Glencore's struggling South African unit, Optimum, which is currently embroiled in a dispute over the price of coal with power utility. . .  Full story
South Africa's power utility Eskom said on Tuesday it was seeking coal bids for its 2,100 megawatt (MW) Arnot plant, after. . .  Full story

A majority of Africans say corruption has risen in the past 12 months and most governments are seen as failing to stop bribery and secret deals, an opinion poll by Transparency International showed on. . .  Full story
The depreciation in South Africa's rand currency has been an important contributor to inflation and is a major risk to consumer price forecasts, the central bank said on Monday, as the. . .  Full story
South Africa's rand reversed losses against the dollar in early trade on Tuesday after touching a record low in the previous session as the greenback retreated from a 13-year peak.. . .  Full story
Company News
Shareholders are advised that at the annual general meeting of shareholders held on Tuesday, 1 December 2015 (in terms of the. . .  Full story
Coal of Africa Limited ("CoAL" or the "Company") announced the signing of a non-binding Memorandum of Understanding (˘MOU÷) with Qingdao Hengshun. . .  Full story
The board of directors of Bell ("Board") announced at its meeting held on 30 November 2015 that the Board appointed two. . .  Full story
Exxaro and Eskom have been in discussion for the last two years (since 2013) in relation to the CSA in terms. . .  Full story

Shareholders are advised that Diana McIlrath, B Comm LLB has been appointed as company Secretary of Bell, with effect from 1. . .  Full story
CoAL confirmed the following awards to directors following the shareholder approval received at the Annual General Meeting of Shareholders (˘AGM÷) on. . .  Full story
Shareholders are hereby advised that there is no change to the CompanyĂs financial circumstances and it remains in final liquidation. Due. . .  Full story
Shareholders are referred to the Reviewed Provisional Condensed Consolidated Interim Financial Statements for the 6 months ended 31 August 2015 released. . .  Full story
Company Results
Revenue for the interim period lowered by 7% to R5.5 billion (2014: R5.9 billion). Operating profit dropped 37% to R881.4 million. . .  Full story
Revenue for the interim period increased to R125.8 million (2014: R116.5 million), operating profit rose to R33.8 million (2014: R27.5 million),. . .  Full story
Revenue for the interim period rose to R155.1 million (R80.5 million). Gross prfoti grew to R43.7 million (R21.2 million). EBITDA jumped. . .  Full story
Fee and commission income came in higher at R2.8 billion (R2.6 billion), while operating profit was R477 million (R271 million).. . .  Full story
World Markets (Spot Prices)
NameTimeRPMove% Move
JSE Overall17:0051535.82-72.01-0.14%
JSE Top 4017:0046295.25-34.31-0.07%
JSE Gold17:00897.536.190.69%
JSE Financial17:0043609.95-205.85-0.47%
JSE Industrial17:0079324.34-194.90-0.25%
JSE Indust 2517:0071657.02-190.06-0.26%
JSE Resource17:0026413.43524.382.03%
DJ Futures19:5817814.00100.000.56%
DJ Ind19:5817847.73127.810.72%
SP 50019:582095.7415.330.74%
FTSE 10017:476389.9033.810.53%
All Ords07:405312.6094.401.81%
NZSE 5007:286150.6850.530.83%
NameTimeRPMove% Move
Gold $19:591064.88-.18-0.02%
Gold R19:5815376.3418.980.12%
Gold R/kg19:5849434911820.24%
Silver $19:5914.09800.03300.23%
Platinum $19:59833.304.000.48%
Palladium $19:59537.30-2.23-0.41%
Brent Crude19:5844.36-0.25-0.56%
USD / ZAR19:5914.43570.01090.08%
GBP / ZAR19:5521.71570.01720.08%
EUR/ ZAR19:5515.31380.06430.42%
NZD/ ZAR04:599.53880.05440.57%
AUD / ZAR19:5510.56250.13501.29%
USD / JPY19:59122.9170-0.2310-0.19%
EUR / USD19:591.06150.00450.43%
GBP / USD19:591.50730.00100.06%

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The JSE Today

Trading Statistics
* Includes all listed instruments on the JSE
Major Moves Up
SharenameSaleMove% MoveVolume
1 ASCEN_A  500267114.59.%175533
2 INDEQTY  122022022.00.%1150
3 SYNERGY-B  6006512.15.%20940
4 RANGOLD  235209.30.%175711
5 SIBANYE  20311397.35.%4356323
6 ARCMITTAL  610356.09.%756931
7 DAWN  529295.80.%41381
8 EXXARO  47592595.76.%808437
9 PETMIN  13475.51.%355936
10 Gaia  1000505.26.%12783
11 SANTOVA  400205.26.%264641
12 QUANTUMF  316154.98.%64465
13 NORTHAM  23401004.46.%1046762
14 ALTRON  478183.91.%52998
15 ASSORE  68602353.55.%110369
16 MONTAUK  1050353.45.%1368
17 CSG  15553.33.%21829
18 DATATEC  52021623.21.%673804
19 CASHBIL  334009993.08.%33195
20 HOWDEN  2833833.02.%2354

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Major Moves Down
SharenameSaleMove% MoveVolume
1 CARGO  1122-278-19.86.%2020
2 STEFSTOCK  298-62-17.22.%1230517
3 CULLINAN  140-28-16.67.%1500
4 BASREAD  331-54-14.03.%837
5 COMAIR  247-31-11.15.%367575
6 DIAMONDCP  156-19-10.86.%700
7 ACSION  900-99-9.91.%3500
8 ONELOGIX  390-42-9.72.%7674
9 AFRIMAT  2751-279-9.21.%304926
10 ACCELERAT  610-40-6.15.%153411
11 TRENCOR  3877-253-6.13.%156144
12 FORTRESSB  3800-236-5.85.%2171004
13 INVICTA  5001-299-5.64.%94352
14 SYCOM  2800-150-5.08.%1850
15 NOVUS  1190-60-4.80.%514
16 YORK  210-10-4.55.%76645
17 MIXTEL  277-13-4.48.%295543
18 HARMONY  881-41-4.45.%1220995
19 KUMBAIO  4299-200-4.45.%1012028
20 ASTRAL  11343-457-3.87.%247745

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New Highs
SharenameSaleHighMove% MoveVolume
1 INDEQTY  1220122022022.00.%1150
2 SANTOVA  400404205.26.%264641
3 MONDILTDP  33600336317332.23.%341590
4 Stor-Age  10201020161.59.%336934
5 MONDIPLCP  33561337703931.18.%431136
6 CAPCO  963496601101.15.%669970
7 INVPLC  1224612328470.39.%1180182
8 SABMILLER  87737882431310.15.%771739
9 BLUETEL  125012840.378236
10 SUPRGRP  37223755-1-0.03.%612570

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New Lows
SharenameSaleLowMove% MoveVolume
1 STEFSTOCK  298230-62-17.22.%1230517
2 TRENCOR  38773832-253-6.13.%156144
3 ASTRAL  1134311200-457-3.87.%247745
4 ALTRON-P  471455-18-3.68.%187675
5 ALEXANDER  635631-20-3.05.%5653631
6 MRHLD  838769-25-2.90.%1105383
7 STANBANK  1270012643-284-2.19.%7675374
8 TEX  862845-17-1.93.%973682
9 IMPERIAL  1490214760-293-1.93.%831473
10 CML  59865930-91-1.50.%2179605
11 NETCARE  35643334-36-1.00.%7075414
12 ADCORP  21602112-19-0.87.%150447
13 B-AFRICA  1577015601-119-0.75.%1553024
14 BLACKSTAR  9008800.89403
15 ATT  202820010.1209292

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Index Summary
Index NameRPMove% Move
Top 4046,295.25-34.31-0.07%
Mid Cap65,336.98-163.45-0.25%
Small Cap57,709.53-926.86-1.58%
Resource 2026,413.43524.382.03%
Industrial 2571,657.02-190.06-0.26%
Financial 1516,198.04-57.80-0.36%
Financial & Ind. 3075,438.01-216.63-0.29%
All Share51,535.82-72.01-0.14%
Oil & Gas 8,888.79296.293.45%
Mining 16,014.36234.771.49%
Gold Mining897.536.190.69%
Platinum Mining18.10-.68-3.62%
GENERAL MINING4,600.81100.752.24%
Oil & Gas Producers 47,793.381593.123.45%
Basic Materials 17,826.18201.801.15%
Chemicals 20,448.9337.330.18%
Forestry & Paper 56,242.23713.971.29%
Industrial Metals 3,303.81-40.67-1.22%
Industrials 43,007.39-281.70-0.65%
General Industrials 159.78-.54-0.34%
Consumer Goods 78,892.46297.630.38%
Automobiles & Parts 5,830.9883.781.46%
Household Goods586.7761.02%
Health Care 9,283.78-24.28-0.26%
Beverages 298.66.480.16%
Index NameRPMove% Move
Food Producers 8,527.94-89.22-1.04%
Personal Goods 1,088.8514.581.36%
Consumer Services 17,670.07-285.29-1.59%
General Retailers 7,973.80-90.77-1.13%
Travel & Leisure 5,856.77-8.24-0.14%
Media 460.11-9.05-1.93%
Support Services 2,538.78-38.18-1.48%
Telecommunications 7,746.0725.390.33%
Financials 43,609.95-205.85-0.47%
Banks 6,744.75-100.77-1.47%
Non-life Insurance 53,851.86-61.25-0.11%
Life Insurance 41,818.2259.240.14%
General Financial 4,934.21-.87-0.02%
Technology 57,035.701085.831.94%
SHARIAH TOP40 2,877.03280.97%
FTSE/JSE SHARIAH ALL3,107.16190.61%
COAL MINING6,016.213275.76%
FTSE JSE Fledgling 6,365.15-51-0.80%
FTSE/JSE Alt X 1,546.51-1-0.08%
CAPPED PROPERTY 581.62-0.35%
RESOURCE 14,545.612131.49%
DIVIDEND PLUS185.55-0-0.06%
FTSE/JSE RAFI 408,648.44130.15%
Capped Top 4024,482.43-5-0.02%
Capped All Share26,134.40-36-0.14%
JSE TABACO 10,717.75-81-0.75%

Click here for the Sharenet Index Summary page
Latest Consensus Changes**
CodeCompany NameStatusUpdated
Results Expected**
ExpectedCompany NameFin. Date
02/12/2015SENTULASeptember 2015 (Interim)
03/12/2015JUBILEEJune 2015 (Final)
04/12/2015STELLARAugust 2015 (Final)
07/12/2015STOR-AGESeptember 2015 (Interim)
08/12/2015LABATAugust 2015 (Interim)

Recent Dividends**
Share NameDec-DateLDTPay-DateAmount
PRESCIENT30/11/1529/01/1608/02/16ZAR 0.0285
AFORBES30/11/1531/12/1511/01/16ZAR 0.1500
HUGE27/11/1517/12/1528/12/15ZAR 0.0400
SIRIUS27/11/1510/12/1520/01/16EUR 0.0092
QUANTUM26/11/1505/02/1615/02/16ZAR 0.1000
Ex Div**
Share NameDec-DateLDTPay-DateAmount
BRAIT PREF09/11/1527/11/1507/12/15ZAR 4.8723
INVPREFR19/11/1527/11/1514/12/15ZAR 4.4507
VODACOM09/11/1527/11/1507/12/15ZAR 3.9500
SPAR11/11/1527/11/1507/12/15ZAR 3.9300
INVESTEC-P19/11/1527/11/1514/12/15ZAR 3.9040

Upcoming AGMs**
CodeCompany NameDateStatus
FSRPDFirstRand Ltd.01/12/2015Confirmed
FSPPFirstRand Ltd.01/12/2015Confirmed
BIFR1FirstRand Ltd.01/12/2015Confirmed
FSRFirstRand Ltd.01/12/2015Confirmed
FSRPAFirstRand Ltd.01/12/2015Confirmed

Stock Exchange News Service
01/12/201517:47ELLIES HOLDINGS LIMITED - Results of annual general meeting
01/12/201517:40ANGLO AMERICAN PLC - Total voting rights
01/12/201517:38SASOL INZALO PUBLIC LIMITED (RF) - Change in director composition
01/12/201517:30COAL OF AFRICA LIMITED - MOU for Makhado Project
01/12/201517:30ELLIES HOLDINGS LIMITED - Dealing in securities by an associate of a director of...
01/12/201517:00GAIA INFRASTRUCTURE CAPITAL LIMITED - Dealing In Shares By Associate Of Director
01/12/201517:00SABMILLER PLC - Notification of transactions of a PDMR
01/12/201516:54EXXARO RESOURCES LIMITED - Arnot Mine Coal Supply Agreement
01/12/201516:52BELL EQUIPMENT LIMITED - Appointment of Directors
01/12/201516:52CONDUIT CAPITAL LIMITED - Dealings in securities by directors pursuant to the Co...
01/12/201516:48FORTRESS INCOME FUND LIMITED - Reconstitution of the Fortress board of directors
01/12/201516:47GAIA INFRASTRUCTURE CAPITAL LIMITED - Dealing In Shares By Associates Of Directo...
01/12/201516:46CARGO CARRIERS LIMITED - Disposal of Shareholding in BHL Zambia and BHL Namibia ...
01/12/201516:45BRAIT SE - Results of Extraordinary General Meetings
01/12/201516:45ALARIS HOLDINGS LIMITED - Dealings in securities by the Alaris Share Incentive T...
01/12/201516:43AFRICA ETF ISSUER (RF) LIMITED - Abridged Prelisting Statement Initial Offer fo...
01/12/201516:42INGENUITY PROPERTY INVESTMENTS LIMITED - Posting of Ingenuity's integrated annua...
01/12/201516:30SEPHAKU HOLDINGS LIMITED - Notice of an acquisition of a beneficial interest in ...
01/12/201516:23OMNIA HOLDINGS LIMITED - Dealings in securities by a director
01/12/201516:10OLD MUTUAL PLC - Form 8.3 - Public Opening Position Disclosure
01/12/201516:00LONMIN PLC - Notification of major interest in shares
01/12/201516:00MURRAY & ROBERTS HOLDINGS LIMITED - Market update on the collapse of the pedestr...
01/12/201515:48ADVTECH LIMITED - Director's Dealings
01/12/201515:45BELL EQUIPMENT LIMITED - Change to company secretary
01/12/201515:30GREENHOUSE FUNDING III (RF) LIMITED - Investor report
01/12/201515:30BRITISH AMERICAN TOBACCO PLC - British American Tobacco p.l.c. (the Company) Vo...
01/12/201515:26IVUZI INVESTMENTS LIMITED - IVA550-Full Capital Redemption
01/12/201515:16FIRSTRAND BANK LIMITED - FRC198-Partial Capital Redemption
01/12/201515:10TRANSACTION CAPITAL LIMITED - Dealing in Securities
01/12/201515:00BRITISH AMERICAN TOBACCO PLC - BAT Signs Vapour Collaboration Agreement
01/12/201514:30TONGAAT HULETT LIMITED - Dealing in securities - Purchase of shares by CEO
01/12/201514:15COAL OF AFRICA LIMITED - Appendix 3Y Change of Directors Interest Notice
01/12/201514:15COAL OF AFRICA LIMITED - Appendix 3B New issue announcement
01/12/201514:05STEINHOFF INTERNATIONAL HOLDINGS LIMITED - Dealing In Securities By A Director
01/12/201514:00PICK N PAY HOLDINGS LIMITED - Disclosure of acquisition of securities in Pick n ...
01/12/201514:00LONMIN PLC - Notification of major interest in shares
01/12/201514:00THE STANDARD BANK OF SA LTD - New Financial Instrument Listing Announcement - CL...
01/12/201513:54NEDBANK LIMITED - Domestic medium term note programme: increase in authorised am...
01/12/201513:35INVICTA HOLDINGS LIMITED - Dealing in securities by an associate of a director
01/12/201513:20RESOURCE GENERATION LIMITED - ASX announcement Final Directors interest
01/12/201513:16SUPER GROUP LIMITED - Annual Financial Statements for the year ended 30 June 201...
01/12/201513:00COAL OF AFRICA LIMITED - Grant of performance rights and options
01/12/201513:00BHP BILLITON PLC - Copper Briefing and Site Tour - Building Momentum in Copper
01/12/201513:00CAPITAL & REGIONAL PLC - Holding in Company
01/12/201512:43BIOSCIENCE BRANDS LIMITED - Voluntary Update on Suspension
01/12/201512:32PINNACLE POINT GROUP LIMITED - Voluntary announcement on the suspension of the C...
01/12/201512:14ECSPONENT LIMITED - Trading Statement, Related Party Terms Announcement, Acquisi...
01/12/201512:04DELRAND RESOURCES LIMITED - Management's discussion & ANalysis of FInancial Cond...
01/12/201511:55DELTA EMD LIMITED - Passing of the acting chief executive officer
01/12/201511:51ANSYS LIMITED - Correction to the Reviewed Provisional Condensed Consolidated in...
01/12/201511:50DELRAND RESOURCES LIMITED - Interim Condensed Consolidated Financial Statements ...
01/12/201511:38SAPPI SOUTHERN AFRICA (PTY) LIMITED - SAPPI Southern Africa Limited - Change of ...
01/12/201511:00NEDBANK GROUP LIMITED - Dealing in securities by a director
01/12/201510:10FIRSTRAND BANK LIMITED - FRS88 - Partial Capital Repurchase
01/12/201510:10LIBERTY HOLDINGS LIMITED - Dealings in Securities by Directors
01/12/201510:02INVESTEC BANK LIMITED - Notice of Breached Barrier - SBKIHI
01/12/201510:01INVESTEC BANK LIMITED - New Listing - ESPIB4
01/12/201510:00FAMOUS BRANDS LIMITED - Change to the Composition of the Board of Directors
01/12/201510:00ANGLO AMERICAN PLC - Notification Of Major Interest In Shares
01/12/201510:00SABMILLER PLC - Rule 2.10 announcement
01/12/201510:00SABMILLER PLC - Total voting rights and capital
01/12/201509:13STOR-AGE PROPERTY REIT LIMITED - Notice of an acquisition of a beneficial intere...
01/12/201509:00ASPEN PHARMACARE HOLDINGS LIMITED - Voluntary announcement - Aspen acquires the ...
01/12/201509:00ALLIED ELECTRONICS CORPORATION LIMITED - Retirement of Executive Director
01/12/201509:00CAPITAL & REGIONAL PLC - Laura Whyte Appointment
01/12/201509:00DATATEC LIMITED - Logicalis acquires Australian ICT services and solutions provi...
01/12/201509:00GROWTHPOINT PROPERTIES LIMITED - Pre Close Conference Call
01/12/201508:47GLENCORE PLC - Notification of major interest in shares
01/12/201508:25ARGENT INDUSTRIAL LIMITED - Dealing in Securities by a Director
01/12/201507:54A E C I LIMITED - Dealings in securities by directors, by the company secretary ...
01/12/201507:25THE WATERBERG COAL COMPANY LIMITED - Further Cautionary Announcement and Update ...
01/12/201507:05LONMIN PLC - Notification of major interest in shares
01/12/201507:05NEW GOLD ISSUER LIMITED - GLD - Partial De-listing of NewGold Debentures
01/12/201507:05ADCORP HOLDINGS LIMITED - Amendment of the ZAR2,000,000,000 Domestic Medium Term...

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