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SHP historic PE just hit

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SimonPB
Valued Contributor
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22 REPLIES 22
partridge
Super Contributor
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SimonPB
Valued Contributor
yip, but as I own a handful, loving it ..
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Not applicable
Ja, a quick look at Moneyweb's unit trust tool (if it is to be believed) - SA unit trusts have a total of about R680m in holdings, for a R100bn market cap company, that is like 0.6%. So, give the pension fund companies some dues, and private shareholders, directors, et al - you are still looking at what appears to be the very large majority of shareholders being international. I think we are seeing a fundamental shift in the way the JSE gets evaluated here. Africa is the last great emerging market, and Shoprite, Mr Price, MTN and our banks are heavily invested. Foreign companies (especially US funds) have a choice of like basically bugger all in USE T-bills, or 1.5% dividends in an emerging market company. Even if the price drops from here, it is a no brainer for them, IMO. The dividend alone makes it practically risk free (or at least comparable to the risk free rate)
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gamma
Contributor
skaaptjop, you make a very valid point. There will be those guys that simply will not buy these stocks due to the high multiples and valuations. And that's fine - it all comes back to your approach to managing your portfolio. Develop a strategy and stick to it; whether it's fundamental/valuation driven, technical or rule based
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klapka
Super Contributor
I like what Skaap has to say. Mind you it is an easier ride when one has been in for much of it. I sold about a third of mine at R120 ish. Now I don't really want any more profit this year so hanging on for more than one reason, at least until March, anyway.
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Not applicable
just remember folks - a 1.5% dividend yield is a big thing for an institution who's risk free rate on a 10 year T-bill is 1.5%. For a South African investor though - our risk free rate is way higher, so for us, at these values, SHP offers very little in the way of returns. Each to their own.
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Lee_1
Frequent Contributor
Nice point which strangely I hadn't made. These companies are overvalued for me, but seen as valuable for huge investment houses as they are lower risk. So some shares which don't have huge PE's may still be valuable, just don't fit the big guys risk standards. Or am I conning myself in to jumping in and loosing my money?
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sponono
Super Contributor
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Rams
Super Contributor
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Not applicable
Choose shares based on a plan. If your not getting the results that you want from your plan then revisit the plan and how it selects those shares but jumping in and out from the fear of missing out is a bad plan.
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sponono
Super Contributor
as soon as DEP and BravoAlsitrader go short, lol. wonder what happened to them.
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SimonPB
Valued Contributor
R200 now just a hop away (no skip or jump required)
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Rams
Super Contributor
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sponono
Super Contributor
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klapka
Super Contributor
now only a step away.
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DEP
Super Contributor
We are here... can't get SHPcfd shorts
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Rams
Super Contributor
Sometimes the lord helps those who don't help themselves?
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sponono
Super Contributor
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DEP
Super Contributor
RAMS, and the meaning of that!
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