I just thought it would be interesting to hear each other's views. I like Grindrod as shipping will pick up when the economies of the world start functioning better, still good to buy right now I think. Other's could be a bit better banking system, but lets see. if i have other ideas shortly i will post. whats your thoughts on the best sector and company?
1) VMK - should declare a 15cps divi in April'11, currently trading on an estimated forward PE <4 at 130cps; 2) SOH - highly geared to economic recovery and will benefit from a buoyant copper price, forward PE <5; and 3) PNC, the acquisition of Axiz will lift turnover by 50% with significant scope for margin improvement - trading on a forward PE of 5.5x at 620cps.
Sorry for company, One of the large diversifieds or just the STX. My relatively ***** Quants model is saying AMS, ACL & LON are Buys and KIO & GFI as Shorts. It doesn't work well in low Volatility though, works exceptionally well when things are all over the place. OMO
Go for anything industrial eg Satrix indi lifted from 2154c (Dec 2009 ) to 2170 May 2010 and recently to 2656c, that an increase of 22 % in a few month , and it will continue as economy improves in the next 12 - 24 months. Otherwise go Capitec, there still lots of growth ... they are about half way in rolling out their branches. Its will be a while before the other bank catch up . market does not trust the other bankc new prodcuts that were to compete with CPI. MassMart also good for retail sector. WEZ long for mining. Regards Castro
Don't be fooled by construction companies'cash - it is not free cash, as usually it is locked up as security for loans. But ja, given everyone's love affair with SSK, it will be my top pick out of the construction sector, runner up is BSR
I think it is still going to take a couple of years for GND to really fly. Rand is strengthening further (which has a huge impact on their margins) and spot shipping rates are still falling. The impact of the latter is that their long term contracts will come in lower again next year. What I really like about GND is their strategic positioning and integration into the value chain (ports, bunkering, trading, etc). I think it is a bit overvalued at the moment, and will probably pull back about 15% (IMO), but I will steadily accumulate every chance I get. A good quality low risk investment, IMO