MY SMALL- and mid-cap portfolio has been rather uninspiring over the last year and a bit. I think there are some good stories in there, though, including Buildmax, Oando, Purple Capital, Afrocentric Investment Corporation, RE:CM & Calibre and ISA Holdings.
While the stories are good, the shares have gone nowhere and are tying up capital. However, when you see Buildmax jump 45% in a day, it reminds you why you want to have some cheeky bids in the market in companies that primarily by the growth in global vehicle sales. However, future primary supply growth will remain constrained, which will result in tighter market conditions leading to higher prices for our metals.”
To counter this, the company is investing in replacement projects to restore its production profile.
Costs per platinum ounce have also increased to R16 570 from R13 450 due to strike-related losses.
You can expect more of this as the platinum sector prepares for its strike season as well and if the current ongoing gold strike is anything to go by, there might be further pain.
TANDISIZWE MAHLUTSHANA lurking as the automotive industry starts its wage negotiation process (this is every three years) and any strike action could further hurt them.
However, Metair remains a leader in original equipment and after-market automotive products, most notably batteries, with about 10% of revenue from non-automotive. Their major new product has been the start/stop battery that it produces in the Romanian factory and which has great prospects, and, during the first half of this year, the company got a second contract to supply these original equipment products starting next year.
SIMON BROWN you believe in. If the businesses are good, then the market eventually realises this.
I’ve tipped Vividend Income Fund for the last year as my preferred entry point into the property sector, and while the share price is suffering some overhang from various capital raisings, the fundamentals still look sound, especially when the share dips beneath R5/ share. At the moment R4.90/share buys you a growth business on an earnings multiple of around 9 and a dividend yield of above 11%.
If you can get shares under R5 then you deserve all of that fantastic investment yield.