JSEDirect with Simon Brown

Simon Shares Crowd1 ~ I been digging into it. Scam, a multi level marketing gimmick with no actual product apart from getting other friends, family and fools involved. Ascendis Health (JSE code: ASC) trading updates illustrates the risks of relying too much on net asset value (NAV). They are writing down R4.2billion of "goodwill, intangible assets and property, plant and equipment". In other words...

Simon Shares A late and short show this week, discussing the chart below showing return so far for 2019 (to close 17 October 2019). Surprisingly, all positive and some real good returns. JSE – The JSE is a registered trademark of the JSE Limited. JSE Direct is an independent broadcast and is not endorsed or affiliated with, nor has it been authorised, or otherwise approved by JSE Limited. The view...

Simon Shares #WhatsAppStokvel This is a scam, of course it is. You're only asking because you know it is and you're hoping somebody will give you 'permission' to go ahead anyway. Anything that requires you to recruit others in order for you to profit is always 100% a scam. Long4Life* (JSE code: L4L) upping their stake in Spur (JSE code: SUR) to over 10%. Is it a pure valuation play or does Joffe h...

Up coming events; 10 October ~ Is it time to buy listed property? 31 October ~ Live Fat Wallet Show recording 10x South African Retirement Reality Report 2019 Simon chats with 10x Investments founder and CEO about their second Retirement Reality Report and a 1million give away into a retirement annuity. You can find the full report here . Subscriber to our feed  here Subscribe or review us in  iTu...

Simon Shares Blue Label (JSE code: BLU) shares flying after writing down CellC to zero. Up some 30%. I guess the market is relived CellC is only going to zero. WeWork gets a new CEO as founder Adam Neumann steps aside. Makes sense, aside from a lot of crazed decisions he's made. Founders are a different type of person from a CEO. The new top end iPhone is on sale for pre-order locally. At almost R...

Simon Shares Local inflation came in at 4.3% in August from previous of 4.0%. This a little higher than expected with food one of the main drivers. Maybe we're finally seeing food inflation that will help the retailers. MPC rate announcement on Thursday, 20 out of 25 economists say no change. If they'e right then I think a November cut is certain. Prosus (JSE code: PRX) remains in the Top40 and In...

Simon Shares Hello Prosus (JSE code: PRX). Spun out of Nasper (JSE code: NPN) and trading on JSE and Amsterdam Euronext. I expect Prosus to be the better deal as Amsterdam is a larger market for those wanting access to Tencent and the other assets. And the local fun damager saying that Prosus will do well as local fun damagers don't understand tech should hang his head in shame. The issue was simp...

Simon Shares Local Q2 GDP came in at 3.1%, higher then expected but what struck me was the comment from Stats SA ~ "spurred on by a build-up of inventories and increased household expenditure". Now we have seen Woolies* (JSE code: WHL) and Shoprite* (JSE code: SHP) both comment that the second half to end June was stronger than the first, and this statement would suggest it was the second quarter....

Simon Shares An economic proposal out of National Treasury . Good looking document, but as always implementation is what matters. Adrian Gore, CEO of Discovery* writes a great piece for the World Economic Forum " Things are bad and getting worse for South Africa. Or are they? ". Full of actual facts rather than emotions that typically cloud the debate. Naspers (JSE code: NPN) shareholders have agr...

Simon Shares Shoprite* (JSE code: SHP) results a show of many parts. Locally second half much better after the disaster of the first half. Rest of Africa swings into a R265million loss after making R1.6billion in 2016 FY. Dischem (JSE code: DCP) below 2000c. Was always way over valued but still on a PE of over 20x so not yet cheap. AdvTech* (JSE code: ADH) decent trading update. Lots of moving par...

Brought Index and Structured Solutions, Absa CIB Simon Shares US yield curves have inverted across the range. Shorter term rates are higher then longer-term rates. Now every recession has been proceeded by a yield curve inversion. But not every yield curve inversion has been followed by a recession. So maybe it's warning us or maybe it's not. In short, we'll see lots of hysteria and end of world d...

Simon Shares Trade wars are back , but this time 'only' 10% on US$300billion of goods. No surprises? China is responding by allowing their currency to weaken to decade lows. Fed cuts 0.25%. Trump says that's not enough, but he is priming an excuse. He has an election next year and if the market / economy is weak - he'll blame the Federal reserve. Iron ore futures lost 10% last week and are current...

Simon Shares Shoprite* (JSE code: SHP) trading update sees full year profits down. But the real point is that the second half of the year was way better than the first half as they fixed DC and IT issues and had no further strike action. But it is still tough with lots of products in deflation which is squeezing margins. Massmart (JSE code: MSM) update was a shocker with Game bleeding like crazy....

Simon Shares Kumba (JSE code: KIO) results saw production down, but with the average selling price up 57% at US$108 / tonne - they shot the lights out. But this is surely the top here? Rumours are that Vale has iron ore on the water heading for China and slower Chinese GDP may hit demand, sending iron ore back to a more sensible price around US$70 / tonne? Platinum continues to edge higher. Rememb...

Simon Shares S&P500 above 3,000 and Dow Jones above 27,000. EOH (JSE code: EOH) have found R1.2billion of bad deals over 4 years, 2013-2017. A new dawn , I think so, but I would add a very slow dawn. Platinum starting to look decent? We have higher lows and two higher highs. A close above US$910 (still a way off) and things looking real strong. If you're long PGM miners. If not an entry on pull ba...

Simon Shares CSEW40* change confirmed for next Wednesday, it'll now be SMART. Trade peace, kinda ~ for now. In classic Trump style, lots of huffing, puffing and threatening the blow the house down. Until a 'deal' is reached. Afrimat (JSE code: AFT) walks away from the Universal Coal deal. No details, but likely they didn't like what they saw? Respect, far too many deals get deal mania and conclude...

Simon Shares The Top40 is up almost 20% since the lows of November and over 12% year-to-date. But instead it feels all gloom and doom. Wescoal (JSE code: WSL) results look horrid, but they had strike issues when they employed a new contractor and that hit production and the leverage impact seriously hit HEPS. But they remain a high quality junior coal miner. Omnia (JSE code: OMN) results were ugly...

Simon Shares Old Mutual (JSE code: OMU) has fired suspended CEO Peter Moyo and detailed what went wrong. The short version is that the company Moyo founded (NMT group), was CEO of and chair since taking up CEO at Old Mutual paid two dividends when they should in the first instance paid Old Mutual as a preference shareholder a dividend and in the second instance they paid when they should have firs...

Simon Shares Solid Stor-Age (JSE code: SSS) results from a stock I have largely ignored and been wrong about. Interesting TymeBank presentation from African Rainbow Capital (JSE code: AIL).  Lonmin (JSE code: LON) is gone, taken over by Sibanye Gold (JSE code: SGL). Lonmin has a consolidation adjusted all time high of over R33,000, exiting at 1480c. They also had a US$10billion offer in August 200...

Simon Shares US Fed has now promised a rate cut. This boomed markets but under lying the statement is the acceptance that trade wars are hurting the US economy. Horror Q1 GDP number at -3.2%. We knew it would be bad, thanks to aggressive load shedding during the period. But nobody expected this bad. The good news (sorta) is that no load shedding in Q2 should help boost that number. Also Agricultur...

Simon Shares Rough month. We're ending May (well Wednesday mid morning, so 2.5 trading days still to go) up 3.5% for the year, but we started May up 11.8%. No don't quote me rhymes. Astral Foods (JSE code: ARL) issued a SENS detailing issues with municipal water and the cost to the group. They've also spoken about issues with electricity supply. The question is, are they the only ones being impact...

Simon Says Upcoming events; 23 May ~  JSE Power Hour: Mastering stop losses with Trader Petri 30 May ~  JSE Power hour: Hard question. Better Answers 20 June ~ JSE Power Hour: Trade the trade wars Coronation* (JSE code; CML) results about as expected and it looks like they're already moving up off the bottom of the down trend. I hold and like. People asking if passive doesn't kill Coronation and t...

Simon Shares Long4Life* (JSE code: L4L) results. Good and lots of cash to spend. Calgro M3 (JSE code: CGR) results. Horror show. Upcoming events; 23 May ~  JSE Power Hour: Mastering stop losses with Trader Petri 30 May ~ JSE Power hour: Hard question. Better Answers   * I hold ungeared positions. Subscriber to our feed  here Subscribe or review us in  iTunes Trade wars Can we call it? Trades wars...

Simon Shares Steinhoff (JSE code: SNH) results for September 2017 are out and they're a mess. All they really have is a c70% stake in Pepkor. Trade wars have again spooked the market with the orange trumpet going on a Twitter rampage on Sunday, but as I record US markets are green again. Upcoming events; 23 May ~  JSE Power Hour: Mastering stop losses with Trader Petri Subscriber to our feed  here...

Simon Shares By this time net week we'll know the results of the 2019 elections. It's been a quieter election season than I'd expected - which is great. Coronation* (JSE code: CML) update. Assets under management (AUM) flat and spot on what I expected but average AUM was 8% lower for the period. HEPS 20%-30% lower worse than the 15%-20% down I expected on the back of average AUM being 8% lower eve...