PDSNET ARTICLES - APRIL 2020

Security and Bitcoin

In times of crisis, investors typically abandon their search for a return on their capital and look instead for security.
Equity shares, especially in an emerging economy like South Africa are seen as being high-risk, high-return assets.
International investors are attracted to our government bonds and stocks because they see a high real return (after-inflation). The risk of investing

Cartrack Vs Mix Telematics

Two of the most interesting companies listed on the JSE are Cartrack (CTK) and Mix Telematics (MIX). Both companies are involved in providing remote fleet and asset management systems. Both companies started in South Africa recovering stolen vehicles and both have spread across the world expanding their client base and broadening their product options.
As listed shares, both companies have the distinct advantage

Recovery

In our article ("Bear Trend") on 13th March 2020 we said, "this bear trend is likely to be relatively short and sharp. Investors will begin to see that the virus has or is running its course in first world countries and, at some point in the next few months, they will re-enter the market as aggressive bargain-hunters. So, our expectation is that we will see a "V-bottom"

SA might be saved from Covid19

The advent of COVID19 may seem like an unmitigated disaster to private investors, but there a few reasons for us to have some hope.
The first is that our relatively warm weather is on our side. Apparently, this virus is happiest at around 3 degrees centigrade - which means that it thrives in the Northern hemisphere where that type of temperature is common during the winter. Here in South Africa, temperatures can fall that

The Confidential Report - April 2020

America

The US economy, along with economies around the world, is in partial lock-down. Estimates of how this will impact on economic growth vary, but the general consensus seems to be that GDP will shrink in the current quarter by between 10% and 14%. Unemployment is expected to surge from 3,5% before the pandemic to as much as 10%. Weekly jobless claims are expected to climb to