DSY

[Russ]

Has been consolidating for a while but I still like it for the long term.

[partridge1]

Is this view of Discovery  "in the crowd we trust"?  I think this is a share that is going to always be not quite thee - promising and never quite delivering - which is heresy in these columns. Why? Well I think that the demand for capital will grow as it is entreprenurially driven - and earnings will always be in transition. So I would rather invest in them via RMIH - as there is a great growth and earnings stream in its components and its  based on a couple of different models...I am however not widly excited about that UK purchase. And its fully priced. 

[Russ]

Partridge, I look at the chart only. What I like about the monthly chart is that the long term support line, which goes back about 5 years and comes in now at about R112.00, has been tested and held on several occasions in the past 3 months. Further, the resistance line of the downtrend which started in November 2015 comes in at about R117.00 at present. DSY has been flirting with that resistance line in the past couple of weeks. If it can break out of that downtrend it will resume its prior uptrend and will look good for the longer term. Of course if it breaks below that long term support line it's a different story. I favour an upward break because it is so overbought on the monthly chart. I also believe we are in for some rand weakness which will help. I don't expect the bears to give up that downtrend easily but I think it will happen one of these days.

[Russ]

Sorry, oversold on the monthly chart.

[partridge1]

I am in large agreement with your conclusions. But I am concerned long term about their medical aid stuff which is being squeezed - ageing members  more expensive treatments and all that kind of  negative stuff.

and that said the incestuous nature of that administration agreement has me ( wearing my populist hat) thinking that at some point that will be more heavily attacked and become a lower source of profit for them - which up until recently the discovery acolytes /sheep had not recognised..