EDI­TOR’S NOTE

Financial Mail - Investors Monthly - - Contents - RON DERBY fol­low Ron on Twit­ter @ron­derby

Try­ing to find the up­side

WEL­COME TO this, the fourth edi­tion of In­vestors Monthly for 2015. We are near­ing the half­way point for the year, well set­tled into the re­al­ity that the South African econ­omy, which is blighted by an en­ergy short­age, is still a great place for con­sumer-fac­ing com­pa­nies. Re­tail­ers con­tinue to shine, de­spite the threat of higher rates, if not now, some­where in our not too dis­tant fu­ture. While the All Share has gained 8,9%, re­tail­ers are up 18,5% this year.

Clearly the story of the South African con­sumer still holds some weight with in­ter­na­tional in­vestors, as lo­cal play­ers will only be too quick to warn of the per­ils that lie ahead. Or per­haps with the strong dollar not be­ing too kind to the earn­ings of the big­ger US firms, there’s still in­ter­est in the bet­ter-run emerg­ing mar­ket cor­po­rate story.

In­vestors favour the div­i­dend-pay­ing stocks. Whether you are in­vest­ing for in­come or growth, you can get a mul­ti­plier ef­fect by rein­vest­ing div­i­dends re­ceived. Stephen Gun­nion takes a look at com­pa­nies that can make this work for you. Re­sources still aren’t favoured.

In our first fea­ture, Marc Hasenfuss looks at the bet­ter turn­around bets and there are many on the lo­cal bourse. In a world of record high val­u­a­tions, it may be among th­ese trou­bled coun­ters that an in­vestor will find real value.

Award-win­ning eco­nomics writer Claire Bisseker re­turns for this edi­tion to fill us in on the big ques­tion that has gripped mar­kets since the end of the quan­ti­ta­tive eas­ing ex­per­i­ment in the US. When will Janet Yellen and her team raise rates in the world’s big­gest econ­omy and what will be the likely out­come of nor­mal­is­ing rates? Re­cent eco­nomic data from the US sug­gests that we may just may find out next month. (I am in the rather small camp that says we’ll only see higher rates in the US in 2016, and more than likely if there’s a Repub­li­can in the White House.)

An­other thing to look out for next month is the rat­ings agency com­ment on SA. Moody’s says SA has about 18 months to two years to sort out its prob­lems. In “Eco-Watch”, Nt­sak­isi Maswan­ganyi takes a closer look.

In ev­ery edi­tion of this mag­a­zine, I want a fea­ture on an African econ­omy or a growth story on the con­ti­nent that doesn’t nec­es­sar­ily in­volve South African cor­po­rates traips­ing across the plains. This month we look at Zam­bia and the min­ing law changes that the coun­try has made in try­ing to pla­cate min­ers. It seems to have worked, af­ter many had said the ini­tial changes threat­ened the fea­si­bil­ity of their op­er­a­tions.

Our regular con­trib­u­tors re­turn, with Thabi Leoka’s “Tick­ling the Nerve” col­umn and Nicky Smith’s “One Last Thing”.

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