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Online Share Trading

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barry_1
Super Contributor
If u look at the last post on FOS and see my reply to DAY TRADER in June i said wait till there is a side ways movement .Clearly that has not happened and it keeps barreling downwards,so that is probably where i differ from followers of charts,as they would wait for an upturn before buying! It has dropped 36% to date from its highest and is now one Rand above its twelve month low.I've started buying Turbos on it.
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12 REPLIES 12
barry_1
Super Contributor
I've strayed some what,in this one instance only of buying before the INTERIM,but my idea is to keep it till after the FINAL LDT.This way i can receive almost tax free income of around 8.25%,thus two dividends in ayear.This company has never fudged its payments,the reason the share fell is that the perception with higher interest rates it would be harder to expand,how ever it has only slowed them slightly and by the time the FINAL comes the interest rates should be falling.This share thats badly under performing the market average has a forward earnings multiple in 2008 of 8.84.
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barry_1
Super Contributor
i see Vic de Klerk backs my veiw(see Finweek 29 Nov 2007,page32)
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divz
Super Contributor
Barry, does the same argument then not also apply to MPC, Woolies (below 16 yesterday) and generally retailers? they have all been hit hard and must surely now be a good buy they are all good companies and should surely turn around at some stage. I think/hope all the bad news has been priced in.
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JohnnyCash
Super Contributor
Except whoever followed Vic, lost a packet as the barrier warrant he was suggesting on FOS went through the barrier and lost most of its value. That's not to say the share and instalments arent good bets. However Id still like to buy on the UP and not the DOWN. Look at Imperial, it must have about 10 days + with DOWN movements. How much is enough? Dont know, dont care, will ride it down and swop for the UP once it starts moving in that direction
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barry_1
Super Contributor
First i should have written hold for thirteen months and receive three dividends ending with the Interim.Sorry!
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barry_1
Super Contributor
I donn't trade barriers,yes i agree its risky giving advice on derivitives,therefore i only stick to what i'm doing.I'll continue to add at the lows as i have up to the 27/12 to buy in installments to make this scheme work.
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barry_1
Super Contributor
Yes it would seem so ,both have a reasonable earings multiple,except Woolies have issued a warning that they expect to do worse than usual.Woolies Div yeild is at present already 4.3% and Mr Price 1%,against FOS which is now 5.8%,so for me makes better sense.FOS is also in the process of opening more stores in various sectors,therefore we can assume that their market is not saturated yet.As always only my opinion.
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asylum
Super Contributor
I agree with you Jhonny buy on the up some of the retailers could go sideways for some time esp food retailer, its ok if your in it for the long term, i look at what sectors are profitable at the mo and ride them and swop when the trend changes, just take a look at CHB yesterday up almost 4% now my thinking on this is interest rates have been accounted for so ppl will buy less red meat and buy the more affordable meat like chicken. omo
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topgun
Super Contributor
SOV is the chicken stock to buy - highest growth +-30%, forward PE of 6x, divi yield of 4% with superb prospects. omo
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Preston
Super Contributor
TopGun ..Constructive comment. Did you see were they declared dividend from for the last financial period. share premium - you got to be joking...? "Dividend It is proposed by the board that a final capital distribution out of share premium of 61.5c per ordinary share be declared."
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louisg
Super Contributor
If Mr Price increases it's dividend by 20% it will be at a forward dividend yield of about 6%. Note that MPC pays out an ordinary dividend and a share premium dividend. Usually the share premium is not taken into account when the dividend yield (DY) is calaulated therefore it appears that the DY is low. You will also get 36.5c dividend if you buy today (Fri. 30 Nov.- LDT).
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Preston
Super Contributor
Thanks i do understand. My question relates to SOV. If you have a look at the dividend history , majority of dividend is being declared from the share premium account and not from Ordinary operating profit. Apart from the tax implication that distribution from share premium do not attract STC. It is very unusual. I will not invest in a company like that. Interesting to see if company has any deffered tax asset on its balance sheet that will throw out STC implication.
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