ARTICLES

Winning Shares List

Investment in the share market is not about certainties – it is about probabilities.

Success comes from bending the odds in your favour, so that it becomes like playing a roulette table where you have a 60% or 70% chance of winning.

That, of course, means that you must fully expect to lose 30% or 40% of the time – which is why every successful investor has an effective stop-loss strategy. It just does not make any sense to keep losing money indefinitely in a share which is falling. Being successful in the share market is not so much about winning as it is about not losing.

The Winning Shares List (WSL) is one of the most effective mechanisms available to help you to bend the odds in your favour on the JSE. It cuts the number of possible investments that you have to choose from down from the approximately 300 listed shares to just those shares which have a strong possibility of doing well.

Right now, there are 86 shares on the WSL and only 18,6% of them (or 16 shares) have fallen from the prices at which they were first added to the list. The worst of those is Grinship (GSH) which is down just 4,14%.

This means that 69 of the 86 shares (80%) on the list are going up, with the best share on the list being 4Sight (4SI) which was added 295 days ago at a price of 31c and closed on Friday the 24th of May 2024, at 84c – a gain of 170,97% so far.

The list is designed to include only those shares which we consider to have the potential for a significant capital gain. The fact that a share is included does not mean that it is necessarily of “good quality” or that it is “highly rated”. It simply means that we have assessed that it has significant upside potential.

On 16^th May 2024 we added Kore to the WSL at a price of 20c per share. We did this because of the massive and unusual volume traded on the previous day which was more than seven times the average daily volume traded in that share. The price was also up by 5c on the day – showing that insiders were busy buying up all the shares they could lay their hands on.

By Friday the 24th of May 2024, just 7 trading days later, the share closed at 35c and we still did not really know why the share price was rising – but it was up a massive 75%. Consider the chart:

Here you can see that since the beginning of this year, Kore was a very uninteresting penny stock hovering between 12c and 16c on relatively thin volumes. It is a potash mining exploration company with interests in the Republic of Congo. Then suddenly on 16^th May 2024, the share traded a massive 13,4m shares and the price popped up to 20c. This is a classic example of the insiders buying up all the loosely-held shares that they could because they knew the share was about to explode. So we added it to the WSL.

On a previous occasion, we added Quantum to the WSL on Monday the 5^th of March 2024 at 525c per share and it subsequently rose to 1830c just 23 trading days later.

These insider trading opportunities are relatively unusual, but can be extremely profitable when they occur. Many of the other shares added to the WSL are not so dramatic, but have done consistently well over a longer time frame. Some recent examples include:

Harmony (HAR) was added to the WSL on 16-11-23 at 9920c and closed on Friday last week at 17328c – a gain of 74,6% in just over 6 months.

Murray and Roberts (MUR) was added to the WSL on 21-12-23 at 106c and is now trading at 175c – a gain of 65% in just over 5 months.

Pan African (PAN) was added to the WSL on 31-1-24 at 430c and is now trading for 575c – a gain of 33,72% in just under four months.

So, we suggest that, when you are looking for shares which have the potential to perform well, you begin with the WSL and make your selections from that.

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.

PDSNET ARTICLES

Uncertainty Soars

Investors are by their very nature risk takers, but they are always trying to reduce the risk which they have to take to a minimum. Donald Trump, with his threat of an international trade war and his on-again, off-again tariffs has significantly increased the level of risk in markets across the world. This can be seen in the extraordinary volatility in the S&P500

Liberation Day

Trump has done the unthinkable. He has deliberately engineered the collapse of the US and world stock markets in the nonsensical belief that somehow an international trade war will make Americans richer. Nothing could be further from the truth. His actions have taken the S&P down from its all-time record high of 6144.15 on 19^th February 2025 to Friday’s

The Creation of Money

The money supply of a country is a symbol of the goods and services of that country. Obviously, if the size of the money supply is increased more rapidly than the real growth of its economy, then you have more money chasing the same goods and services, resulting in rising prices. Since, over the long term, the only organisation that can create money is the government,

V-Bottom is likely

The 10% collapse of Wall Street, which is a direct result of Trump’s random policy of on-again, off-again tariffs, is very similar to what happened to Wall Street in February/March 2020 when investors tried desperately to accurately discount the impact of the COVID-19 pandemic.

Normally, corrections in the market

The Trump Correction

It is relatively unusual for the activities of American presidents or what they say to have an impact on the New York Stock Exchange, especially during their first 100 days in office. Trump, however, is the exception. His confused, on-again, off-again rulings on tariffs have rattled the market. Markets hate uncertainty and even Trump himself doesn’t appear to know exactly

Dividends

Investors know that the return on a share is made up of a capital gain plus the dividend. Private investors are mostly attracted to the prospect of making a capital gain on the shares which they buy and do not often consider the dividends. What they perhaps do not realise is that a capital gain is actually just the dividend in a different form.

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