ARTICLES

Top Winning Shares

Last Thursday, the JSE reached a new all-time record high of 114046. This, combined with the fact that the rand went below R17 to the US dollar for the first time since the beginning of 2023 suggests that emerging market investors are increasingly bullish. Consider the chart:

The chart shows the effect of Trump’s Liberation Day announcement on 2^nd April 2025 and the low point that followed. Since then, the JSE has recovered very well with just minor corrections. The JSE tends to lead the S&P500 on Wall Street.

So, almost all JSE-listed shares are doing very well and the Winning Shares List (WSL) includes more shares than usual at the moment.  

The top share right now is Pan African – a gold re-treatment mining company that is benefiting from the rising price of precious metals.

As you can see, Pan African was added to the Winning Shares List (WSL) at the end of January 2024 just before the dollar price of gold broke above resistance at $2060. The upward trend accelerated when gold later broke above resistance at $3424.

More recently, Pan African’s share price reacted sharply to the correction on Wall Street and the drop in the gold price. The rapid sell-off in the share was due to its marginal nature, but now it is recovering just as quickly. Obviously, it is a highly speculative share to buy, but it is the first share on the WSL to increase more than 4-fold since being added.

The second share on the list is, surprisingly, Choppies. This is a grocery retailer which specialises in Africa outside South Africa. Whereas the local grocery market is intensely competitive, there is obviously a huge market for groceries in the African countries to the north of South Africa where the traditional players like Shoprite and Pick ‘n Pay have had great difficulty maintaining a significant presence.

Choppies occupies this niche and has demonstrated its ability to run and manage grocery outlets in a variety of politically and economically unstable African countries. Consider the chart:

As you can see, we added Choppies to the WSL on 6-3-25 at a price of 85c when we perceived that it had broken up out of an extended period of sideways movement. Since then, the share has been ramping up as the big institutional investors became aware of it and began taking positions. Their involvement can also be seen from the rising volumes traded in recent weeks.

Choppies closed last Friday at 317c – a gain of 273,9% in just over eight months. We expect it to continue performing well as it is systematically re-rated by institutional investors. It is probably due for a correction now because its earnings multiple has reached unsustainable levels, but the long-term future looks bright.

As a private investor, you need to be cognisant at this time of the systematic risk in the market. Nothing in the share market goes up for ever. Bull trends, like the one we are currently experiencing, inevitably have corrections and eventually reverse to become bear trends. Your best protection against this is to maintain a strict stop-loss strategy that locks in your profits as the market rises but protects you from any significant downward move.

Remember, I am always willing to discuss your specific investments with you at any time. My phone number is 071 502 2383 and I am active on WhatsApp.

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PDSNET ARTICLES

Overview - 10th November 2025

Wall Street

Two weeks ago we suggested in an article that a stock market bubble was developing in AI and predicted that a significant correction was imminent. We repeated that view in the Confidential Report

Bubble

Last Friday the S&P500 reached another new all-time record high, closing at 6791 and reaching a new intra-day record high of 6807. This is obviously an exciting time for private investors, but with each new record high the systematic risk of a bear trend or crash increases. Consider the chart:

The PEG Ratio

Since the government of national unity (GNU) came into power in June 2024, there has been a definite improvement in the South African economy. Perhaps the improvement is not as dramatic as some people were expecting, but the progress cannot be denied.

Possibly the best indicator of that is the 28% rise in the JSE Banking index which, before the GNU had

Rare Earth Elements

Investors worldwide had been of the opinion that Trump’s ability to impact markets was on the decline. His erratic, on-again, off again tariff policies had either disappeared or had been mostly discounted into share prices. His attack on the second largest economy in the world, China, seemed to have been largely resolved, and a meeting with

US Shutdown

There has been much in the media recently about the US government shutdown and the fear among investors that it might begin to affect the stock market, depending on how long it lasts.

A shutdown occurs when the US government reaches its budget limit and requires a bill to be passed through both Houses to extend the government’s spending limits.

New Listings

Two new companies, ASP Isotopes and Greencoat Renewables, have recently come to the JSE. Both are developing companies that have recently made losses and have been funding those losses by raising capital and selling assets. They both have substantial “blue sky” potential but also carry substantial investment risk. This is probably truer of ASP

Exponential Growth

The  S&P 500 index is important because all the stock markets around the world tend to follow it. If the S&P is in a bull trend then London, Tokyo and the JSE will also be in a bull trend – and vice versa.

The S&P500 index began 68 years ago on 4 th March 1957 with an initial value of 43,73. It took nearly

The US Jobs Market

International investors who trade on Wall Street are generally negative about any good news from the economy because it tends to make the monetary policy committee (MPC) more hawkish and less likely to reduce interest rates. The opposite is also true. But there comes a point where bad news is so bad that investors begin to fear that the US economy is heading

Jackson Hole

Once a year in late August central bankers and academics congregate in Jackson Hole to discuss the state of the economy and consider the way forward. Traditionally, the Chair of the Federal Reserve Bank (“the Fed”) addresses the meeting and gives direction to its thinking on monetary policy in the US. This year, the comments of Jerome Powell resulted in the

Choppies

Choppies is a supermarket chain which operates in Botswana, Namibia and Zambia. It is listed both on the Johannesburg Stock Exchange (JSE) and on the Botswana Stock Exchange (BSE). Notably, the company has resisted the temptation to re-enter the highly competitive and cut-throat retail market in South Africa, having exited that market in 2020 due to sustained losses. Despite