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Simon Shares
- Anthony Clark on small caps
- Purity baby powder products were recalled by TigerBrands (JSE code: TBS) due to traces of asbestos.
- PSG (JSE code: PSG) unbundling effective at close on Tuesday. Holders at the close will receive
- 3.87 PSG Konsult (JSE code: KST)
- 1.82 Curro (JSE code: COH)
- 0.12 Kaap Agri (JSE code: KAL)
- 1.04 CA Sales (JSE code: CAA)
- 1.02 Stadio (JSE code: SDO)
An Evening of Fine Dining & Investing
The bear and bull case for investing in Shoprite
Shoprite* (JSE code: SHP) results saw the stock down 7.5%. Let’s dig into what the market maybe didn’t like.
- Only 10% earnings growth?
- With one week less and the 2021 riots in the numbers, decent albeit not knock the lights out.
- Only 600c dividend for the full year?
- Very much in line with the average.
- Expensive on PE of over 20x?
- Always is, but mid-range is about 15% lower. So yes, maybe a little more than usual?
- Opening 275 new stores?
- Cost and are they cannibalising their other stores?
- RSA operating margin 6.8%?
- The top end of the long-term range, worries that it may move lower?
But Shoprite remains one of the best food retailers globally and a core holding in my portfolio. I have bids in the market at around R170 which would put it on a PE closer to the mid-range from the last decade.
Sixty60 grew 150% and remains the absolute market leader in the grocery delivery space.
Checkers Xtra Savings has 24.7m members and it turning into a bank account.
- Sold my Murray & Roberts (JSE code: MUR)
Murray & Roberts weekly chart
Not a lekker chart, I’ve held for a while, but am now out #JSE pic.twitter.com/BKKP4HOLhr
— Simon Brown (@SimonPB) September 4, 2022
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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 views expressed in this programme are solely those of the presenter, and do not necessarily reflect the views of JSE Limited.
JSE Direct Podcast
Thursdays are all about hard-core investing with Simon Brown’s famous JSE Direct podcast. JSE Direct started life on ClassicFM in July 2008 and became a podcast in 2011. Every week Simon chats to industry experts, answers listener question (contact him here to send your Q’s) and gives his views on the state of markets and individual shares.
Reach Simon by email at simon@justonelap.com,
or Twitter @SimonPB
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Image and article originally from justonelap.com. Read the original article here.