| Monday 13 September 2021 Good morning Voornaam,
Friday was a flat day on the JSE All Share Index (ALSI), although I was sad to note that my gold shares have reached a fresh 52-week low. It's a good opportunity to remind readers that investing requires at least a 3-year view and ideally 5 years.
When a share is being punished, negative momentum kicks in and prices are often pushed down as low as 200-day moving averages. When they break below that level, things can get even uglier. I'm a fundamental investor which helps me decide where to act, but technical analysis helps me decide when to act.
I've learnt to wait. Previously, I was happy to top-up my positions after relatively small drops. Karooooo is a perfect example - I love the company and fully believe in the 10-year story, but the share price is still dropping and I'm nowhere near ready to buy more. Thankf ully, I got in before all the hype around the Nasdaq IPO, so I'm only slightly down. Those who bought the peak at the end of April are down over 30%!
Moving on, I'm glad to see that Balwin re-issued its trading statement. Someone must have picked up the error in the wording regarding the earnings range. Perhaps their team reads InceConnect!
Steinhoff was up another 5.9% on Friday, although the price is still 13% off the recent high. Strong progress is being made on the settlement with the contractual claimants, but I must highlight once more that the liquidation hearings in the Cape Town High Court are where the focus will be.
Property giant Growthpoint hasn't been able to grow its dividend in the year to June 2021, releasing guidance that the distribution per share will be at least 15% lower than the prior year.
This morning, I decided to touch on China and the m ajor recent developments that are hurting the gaming sector. Our local market is exposed to this trend through Naspers - Prosus.
I also wrote on City Lodge, which has managed to survive Covid with the help of a massive rights issue. The occupancy rates are still horribly low, although the share price is up over 50% this year as part of a general expectation of at least a partial recovery in the sector.
In September, Herenya Capital Advisors is joining the Magic Markets podcast for #HerenyaSeptember - dedicated to trading techniques and what it takes to be a trader. In the first episode, Petri Redelinghuys joined us to talk about the trading community he has built at Herenya and why it works so well to work together as a team.
As is usual on a Monday, Chris Gilmo ur gives us a view on the economic and political news that is dominating the global narrative.
If you haven't signed up for Ghost Mail, my free weekly mailer that goes out every Tuesday morning, make sure you change that situation by using this link. I use Ghost Mail to discuss investment concepts and trends, so it's the perfect accompaniment to your daily InceConnect email. Look out for it tomorrow.
Have an enjoyable Monday,
The Finance Ghost
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