Simon’s stock tips

Finweek English Edition - - SIMON SAYS -

is­sue as that’s easy enough to cor­rect. But one won­ders if all the trou­bles north of our bor­ders have meant that man­age­ment has taken their eye off the lo­cal ball? Cer­tainly lo­cal bread vol­umes de­clin­ing by 3% sug­gests this was the case in this im­por­tant mar­ket, but other di­vi­sions are do­ing well enough. Now i f they could just get their ac­qui­si­tion strateg y r ight. When c om­par­ing Tiger Brands re­sults to Pi­o­neer Foods* con­tin­u­ing op­er­a­tions re­sults, t he l at­ter is do­ing sig­nif icantly bet­ter and has been tak­ing bread mar­ket share f rom Tiger Brands. The ques­tion is i f Pi­o­neer can hold on to their mar­ket share gains and maybe even con­tinue in­creas­ing it. as it means some fees have not been taken into ac­count. The re­alit y is that the net of fees num­ber is the one that mat­ters, as this is what the re­turn was af­ter all costs. In de­fence of Coro­na­tion, some of the fees that they don’t man­age are ad­viser and plat­form fees and th­ese will also vary from one to an­other. So in­di­vid­u­als will have dif­fer­ent re­turns, but it does high­light just how im­por­tant th­ese ex­tra fees are and how hard it is for in­vestors to re­ally get a clear pic­ture of their per­sonal per­for­mance. So, a great lit­tle com­pany that I sim­ply can’t in­vest in as noth­ing seems to get the price mov­ing.

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