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Online Share Trading

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THRESHOLD
Super Contributor
Valuation is as much art as science sometimes. The two most important factors IMHO are: TNAV with due regard being had for the nature and quality of the asset; and DCF with an adjusted weighting for present cash generated ie. apply a higher discount rate to future anticipated cash flows.
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Rams
Super Contributor
what about the all encompassing ROE
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Jim_Bean
Regular Contributor
I was there between 1992-1995, did a BCom and Hons then CA(SA). I was in Smuts and then in digs on African Street. Worked at the Spur and Gino's waiting tables, most of that money went to student fees. But I did spend a fair amount of time resolving the mysteries of the universe at the Vic while contributing to SAB's growth ... I hear that the Vic has been closed down...pity that!
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THRESHOLD
Super Contributor
Hardly relevant in many microcaps.
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Rams
Super Contributor
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THRESHOLD
Super Contributor
Without going into too much detail: - because the directors are also large stakeholders and they control the "E" and can make it appear as they wish through distribution, variation of reserves, Deferred TAX policy (worse in the days of partial recogniton,) etc. Also - many of these types of companies are in a "ramp-up" phase and cannot be expected to display healthy ROE's. A growth company may wish to retain cash to take advantage of opportunites - this would hurt ROE despite being "the right thing to do. ANS SO ON...
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Rams
Super Contributor
but wont the manipulation of equity to increase ROE also increase the debt/equity ratio? Since ROE has in it the Asset/Equity figure(debt /equity), this would show up on the ROE?
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kwagga
Super Contributor
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Preston
Super Contributor
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kwagga
Super Contributor
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THRESHOLD
Super Contributor
I never said 'to increase" I am interested in situations where the directors are depressing earnings while accumulating their own shares. Remeber - I am looking for value - not window-dressed basket cases.
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Preston
Super Contributor
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Rams
Super Contributor
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Adam_Lewison
Occasional Contributor
Hi, once again it is me the 13 year old. With all the controversy going on i decided i better just clear things up. Yes i can prove i am 13 because i know what the abbreviation "LMFAO" stands for, the only difference between me and any the majority of other traders is that i dont have to pay tax on my profits. So from the helpful comments i have learned rather to invest slowly and more surely in companies that are undervalued. Thank you although i am still uncertain on exactly which share.
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Preston
Super Contributor
Invest in MTN , it is really dirt cheap,excellent dividend play. Imagine spoiling your future girlfriends with all those tax exempt dividend you will recieve from MTN. You can buy yourself a car, some fancy designer clothes and even join an elite social club. Think MTN, think possibilites.
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Rams
Super Contributor
can drive the car to Village!
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TITO
Contributor
OK i get the first three ( Lit... mot...fu.... ) but i am only nine years old, so please let me know the last two and dont let my parents know as i should have been in bed by nine thirty.
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Not applicable
Adam, you might not have to pay tax but your father or whomever is your legal guardian will have to on your behalf!
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CHATTYCHAT
Super Contributor
Mmmmmmm - no more tax excempt div's! and being a 13 y old, his daddy or mommy or whoever is the custodian will have to account for the tax.
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Preston
Super Contributor
mmmmmh, somebody is quoting Sec 7.
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