#230: Questions, questions, questions

Questions, questions, questions

Simon Shares

• Metrofile (JSE code: MFL) results saw HEPS +4.6% (very modest) and the full year dividend 42.9% putting it on a dividend yield of some 6%. Wowness and why I own the stock, for the dividend.
• PPC nil paid letters (NPLs) started trading yesterday as PPCN. People are asking me what to do with them and I am sticking to my story. Shorter term after they convert we may get a bounce, longer term PPC has real risks and I would not want to be a holder. So short answer is sell.
• Bidvest (JSE code: BVT) results were weak with single digit HEPS growth of 2.5% while Bidcorp (JSE code: BID) had great HEPS growth. We know the story and why they split, one local one offshore.
• Nigerian GDP stays negative and country is now in a technical recession. More tough times for local companies operating in that market.
• I am being asked if I am selling the gold stocks in the momentum portfolio? The answer is no, it is a rules based system and we follow the rules.
• GIVRES has done an amazing 99.5% in the last year, Kristia reviews the ETF and get expert commentary from Petri Redelinghuys.
• Next Thursday we have a JSE Power Hour, online or at the JSE in Sandton and we're going back to basics - always a good place to revisit. The topic is wealth creation 101 and is presented by Simon Brown.
• The second part of the Trading Master Class with IG is online, dealing with an index trading system.

We Get Mail

• George
  • I am 25 years old. I own DBX trackers for EUR, US and JAPAN as well as Ashburton Midcap (thanx to your lazy system). I now have an additional R10k to invest in my TFSA. I know what you would do: DBXWorld and a Top40 ETF. But my thinking is that I already have enough exposure to the world and instead of doing an SA top 40, maybe I should invest in an ETF that generates me dividends/interest for the long haul. This seems like a smart idea to a youngster like me. But being a youngster, my ideas are often not the smartest. I am currently thinking of investing in the Coreshares Preftrax ETF and/or the Proptrax Ten. Is this idea smart? If you were me, what would you do with the 10k?
• Ernst
  • South Africa's economy is not looking great at the moment, Gordhan, the rand, junk status. I would like to know if one should invest now in Top 40 ETFs or wait it out till these things happen and everything might be cheap (the value of shares ). Not sure how to use my X amount of money in this time.
• Jing
  • I have had a look at your portfolio and frequently watch your shows. A lot of it seems to be geared towards having offshore exposure and selecting shares with offshore operations. I am currently contemplating investing in developing/emerging economies namely India and China as I feel there is a lot of upside given the size of their economies and high growth rates relative to the rest of the world. I was wondering whether you had any insights on whether this would be a good move at present. Furthermore, are there any funds in South Africa that could give me such exposure to the Indian or Chinese stock exchanges? I know that there are a few shares on the JSE that have interests in China such as Naspers in Tencent holdings, but I am looking at having a broader and more direct exposure to these markets.
• John
  • Hi again Simon, the Stop Losses I have difficulty with are not in Trading but in Investing which are not the same as far as I'm concerned. Trading is far more hands-on. Have lost heavily with CCO & BAT post Brexit & realise I must be far more ruthless but am still unsure as to where I should have placed my SL's.
• Marcia
  • I am worried about the Rand and it weakening a whole lot suddenly. How can I protect against this?
• Sylvester
  • I don't have time to do trading but I want to invest, do I buy and hold ETFs or I look for someone to trade for me.

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