Top 5 Views Posts In May
As his first article last year was so popular, it’s no surprise that Daniel Nel’s follow up piece is too. In this instalment, Daniel carefully reviews each share that he listed in his Top 5 Stock Picks for 2017 in terms of their performance this year so far - and the results are predominantly positive. Our second most popular article this month diverts momentarily to a global topic - Bitcoin. If you’re not familiar with this type of investment, you may need to do a little preliminary reading to get the most out of his article, but Dwaine van Vuuren predicts a high risk of correction in Bitcoin prices, looking at the Bitcoin price relative to the Bitcoin networks’ mining difficulty.
Going back to local matters, Natalie Mayer investigates rising prices in SA - why they are increasing, what to expect in the future, and how we compare to other countries’ prices. The results may leave you delaying emigration for the moment! Keeping an SA focus, Joani van Wyk asks why we are still enjoying foreign investment, despite the political and economic setbacks recently. The clue, she discovers, may well be in the attractiveness of the US-SA carry trade. Finally, Cheyne Anderson’s article wraps up our top 5 posts by offering very practical advice - backed up by research - for those trying to decide which of the two main telecommunications shares to invest in, MTN or Vodacom. Read on!
Summary: Analyst and securities trader Daniel Nel assesses the performance of each of his top five stock picks for 2017, chosen in November last year.
Key quote: "At the end of November last year, I wrote an article on my top 5 stock picks for 2017. My picks were based on good companies that had been quite oversold and whose valuations were looking good at the time. The entire portfolio is up 9.4% over the period, while the JSE All share and JSE Top 40 is trading 6.95% and 7.84% higher respectively."
Summary: Dwaine van Vuuren explains and examines a key indicator for Bitcoin investments, the Bitcoin price relative to the Bitcoin networks’ mining difficulty.
Key quote: "There is an abnormally high risk of a 15-25% correction in Bitcoin prices. Bitcoin prices have gotten too far ahead of network difficulty, and the forces of greed will result in heaps of mining power being thrown at the network to equalise things. So, whilst mining for Bitcoins is very attractive now, it’s going to rapidly become less attractive over ensuing weeks and months."
Summary: Natalie Mayer unpacks SA inflation figures and compares them to countries around the world, but noting that prices are not a measure of the life and lifestyle we may have in SA.
Key quote: "If the [OECD inflation forecast for countries around the world for 2018] proves correct, the only price hikes higher than South Africa’s will be Turkey’s - both well above the 2.2% average for OECD countries at 5.7% and 7.3% respectively."
Summary: Joani van Wyk investigates why foreign countries are still investing in SA, despite recent political upheaval and sovereign downgrades.
Key quote: "The stronger rand is not due to an idealistic perception of our economy that only foreign countries can see, but purely the attractiveness of the SA-US carry trade."
Summary: Cheyne Anderson compares the performance of two major telecommunications companies listed on the JSE – MTN and Vodacom.
Key quote: "MTN is undervalued relative to Vodacom and should offer more upside over the short to medium term. ...Look to switch from Vodacom to MTN (or buy MTN if looking to enter the sector) until the relative price of Vodacom to MTN becomes undervalued."
Natalie Mayer is an independent writer and editor with 12 years’ experience. She has a B.Com in Economics (UCT) and a Master’s in Sustainable Development (University of Stellenbosch) and has worked for a number of high-profile clients, such as the United Nations Educational, Scientific and Cultural Organization (UNESCO), Nedbank, the Sustainability Institute, Counterpoint Asset Management, Pearson Education, and of course, Sharenet - to name a few. Natalie has written and edited research papers, textbooks, print and online articles, and website content on a vast array of topics, including finance and money matters, education, property, social and environmental issues. She is passionate about communication that meets the needs of the audience, and her particular strength is to bring clarity to text.