ARTICLES

The Ramaphosa Impact

27 July 2018 By PDSNET

Since the initial euphoria over President Ramaphosa�s election and inauguration, some of the excitement has worn off and the focus of the media has shifted back to South Africa�s many problems. Maybe we have forgotten that this new president is a consummate businessman in his own right and used to negotiating successfully at the highest level. He has recently stated that it was his intention to bring in $100bn of foreign direct investment (FDI) in the next five years. This was a laudable and much-needed goal. But now it seems that his skill at attracting new investment into South Africa may be the game changer that everyone wanted. So far, since making that announcement, President Ramaphosa has managed to get $34bn in FDI � including $14,2bn from the Chinese President who he cornered at the BRICS (Brazil, Russia, India, China and South Africa) conference in Sandton. This is no mean achievement. He has managed to get one third of his $100bn target in just six months. The effects of this flood of new cash are tangible and so far from what the previous incumbent could have achieved as to be laughable � that is, of course, assuming that Zuma even understood the concept of FDI and its importance. The most noticeable impact has been on the strength of the rand. As the currency market has grasped the idea that Ramaphosa is a veritable FDI salesman, the rand has done an about turn and moved steadily stronger. From its weakest point of almost R14 to the US dollar it has strengthened to R13.20 and looks to continue strengthening from there. Consider the chart:

Rand Dollar Exchange 1 Year Chart - ShareFriend Pro

The effect of this will first be felt in the petrol price and that will impact on every South Africans� life directly. But beyond that it will bring industries and skills and massive amounts of employment. In time it will increase tax revenue and enable us to reduce the government�s exposure to debt. We believe that this newly-displayed skill which our president has demonstrated changes the prospects for the South African economy markedly and as private investors you should be taking notice.

DISCLAIMER

All information and data contained within the PDSnet Articles is for informational purposes only. PDSnet makes no representations as to the accuracy, completeness, suitability, or validity, of any information, and shall not be liable for any errors, omissions, or any losses, injuries, or damages arising from its display or use. Information in the PDSnet Articles are based on the author’s opinion and experience and should not be considered professional financial investment advice. The ideas and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial professional. Thoughts and opinions will also change from time to time as more information is accumulated. PDSnet reserves the right to delete any comment or opinion for any reason.

Share this article:

PDSNET ARTICLES

Quarterlies

One of the major differences between the US equity markets and the JSE is that listed companies in America are required to report every 3 months, not every 6 months as they are on the JSE. The quarterly reports of the S&P500 companies are closely followed by investment analysts and predictions are made for their profits.

Gold's Record Run

On Friday last week, gold reached a new all-time record high of $2871.42 per ounce. Its gain in rands has been even more impressive rising from less than R1000 per ounce in August 1992 to last Friday’s close of R52864.85.

In our Confidential Report of March

Growth by Acquisition

Hudaco (HDC) is a master of growing by acquiring smaller businesses in similar fields of activity or businesses, which then complement its existing suite of businesses. It has been making these bolt-on acquisitions for many years and has developed great expertise at selecting and evaluating appropriate targets.

These bolt-on acquisitions are mostly small

The Impact of News

Old Wall Street wisdom says the following concerning news which comes out about individual listed companies:

1. Good news which is expected - causes the share price to drop.
2. Good news which is unexpected - causes the share price to rise.
3. Bad news which is expected - causes the share price to rise.
4. Bad

Karoo

In April 2018 – nearly seven years ago – we wrote an article about Cartrack. At the time we suggested that it was the ideal investment for private investors because it was a service company with debit order income and almost no working capital that was growing rapidly both locally and internationally.

Tweets

Over the Festive Season, we have been communicating with you via our tweets on “X”. The chart below shows the timing of our individual tweets and what subsequently happened to the S&P500 index.
 

 

Winners in 2024

2024 was always going to be a very good year for the share market. The year began with the S&P500 at 4742.83 (2/1/24) and it reached an all-time record high of 6090.27 (6/12/24) – a gain of 28,4% excluding dividends.

On the 25^th of January 2024 we made the following prediction on Twitter (X):

Pan African Update

Pan African (PAN) is undoubtedly one of our best picks for this year. The share price has doubled in less than 12 months from when we added it to the Winning Shares List (WSL) at the end of January at 430c to last Friday’s close at 861c. Consider the chart:

Mr Price Interims

Almost 6 months ago, on 17^th June 2024, we wrote an article about Mr Price (MRP) in which we examined their results for the year to 30^th March 2024. These results had been published on the Stock Exchange News Service (SENS) a few days earlier on 13^th March 2024 and they were very impressive.

Altron

Allied Electronics better known as Altron, is South Africa’s oldest technology company listed on the Johannesburg Stock Exchange (JSE). Since 1965 it has been providing IT solutions to the economy in various forms. Its customers include more than half of the top 100 companies listed on the JSE. It processes more than 100 million healthcare transactions every year,