Page 14 | Ideas and Forecasts on Stocks — South Africa — TradingView

Our opinion on the current state of AMPLATS(AMS)Anglo American Platinum (AMS), commonly known as Amplats, is the world's second-largest platinum producer, after Sibanye, and plays a significant role in the platinum group metals (PGM) industry. Owned 77.62% by Anglo American, Amplats has undergone a significant transformation over the past few years, moving away from deep-level mining toward more efficient, mechanized operations. This shift has seen the company reduce its number of mines from 18 to 7 and cut overheads and employee numbers by 5

Our opinion on the current state of AFRIMAT(AFT)Afrimat (AFT) is an open-pit mining company supplying composites, construction materials, and other commodities to various industries across Southern Africa. Historically, Afrimat was one of the top-performing shares on the JSE until the end of 2015. After a period of consolidation and navigating through the COVID-19 crisis, the stock broke out of a 3-year sideways pattern, peaking at R76 on 6th April 2022. However, it has since declined due to the downturn in the commodity cycle. The acquisiti

Our opinion on the current state of EOH Enterprise Outsourcing Holdings (EOH) was once Africa's largest information technology company, involved in almost every aspect of computer applications. At its peak, the company had 11,000 staff members, though this number has since been reduced to 6,151. EOH was a star performer on the JSE until August 2015, with a long history of steady profit growth. Its share price peaked at R178 per share with a P:E ratio of 35. However, after an unsuccessful attempt to exceed that high in September 2016,

Our opinion on the current state of FAMBRANDS(FBR)Famous Brands (FBR) is Africa's largest branded fast-food franchisor, operating 2925 restaurants across seventeen brands, with 2574 restaurants in South Africa, 62 in the UK, and 76 in other parts of Africa and the Middle East. The company owns iconic South African brands such as Wimpy, Debonairs Pizza, and Steers. For the last two years, even before COVID-19, Famous Brands has faced challenges in a tough economic environment, with South African consumers hit hard by rising fuel costs, load shed

Our opinion on the current state of WEBBUYCAR(WBC)WeBuyCars was listed separately on the JSE on 11th April 2024, having been unbundled from Transaction Capital (TCP) to raise capital and shield itself from the challenges TCP faces in its taxi division. The company issued 417.2 million shares, which began trading at around R20 per share, giving it an initial market capitalisation of just over R8.5 billion. WeBuyCars has a free float of about 57.5%, with significant institutional investor participation, signaling confidence in the stock. In its

Our opinion on the current state of SASOL(SOL)Sasol (SOL) is an international chemicals and energy company, historically rooted in South Africa's oil-from-coal technology, and about 50% of its profits are linked to oil prices. Sasol has two major growth areas: its 50% stake in the Lake Charles Chemical Project (LCCP) in Louisiana, USA, and its expanding gas exploration efforts in Mozambique. Recently, Sasol was awarded two new gas exploration licenses in Mozambique, covering approximately 3,000 square kilometers, which could bolster its exi

Our opinion on the current state of SASFIN(SFN)Sasfin (SFN) is a banking group specializing in financing services for small businesses and high-net-worth individuals. Listed on the JSE in 1987, Sasfin has been investing in its digital platforms and making strategic acquisitions. The share had been in a long-term downward trend, with investors advised to wait for a decisive upward break through its trendline before considering further investment. The impact of COVID-19 slowed the recovery, though there have been signs of improvement recently.

Our opinion on the current state of OASIS(OAS)Oasis (OAS) is a property company that adheres to the principles of Islamic finance, managing a range of properties and offering financial services. The company also handles institutional investments and retirement portfolios for governments, parastatals, collective investment schemes, and private individuals. In addition to property management, Oasis operates through several wholly owned subsidiaries engaged in insurance, fund management, and property management. In its financial results for t

Our opinion on the current state of ADCORP(ADR)Adcorp (ADR) is an employment services company with subsidiaries in South Africa and Australia. The company has focused on improving its operations through (1) defining and refining its core business, (2) reducing costs, (3) strengthening its brand, and (4) transforming its internal culture. These efforts are aimed at positioning the company for growth, despite the challenging economic environment in South Africa and Australia. In its results for the year ending 29th February 2024, Adcorp repor

Our opinion on the current state of SOUTH32(S32)South32 (S32) was spun out of BHP Billiton in 2015, inheriting BHP's South African coal assets. Today, it is a diversified miner of base metals and minerals, including zinc, coal, aluminium, silver, lead, nickel, and manganese, with operations in South Africa, South America, and Australia. In June 2020, South32 sold its South African coal assets to Seriti, reflecting its strategic move away from coal and a general distancing from South Africa due to the country's administrative and legislative u

Our opinion on the current state of SASOL(SOL)Sasol (SOL) is a large international chemicals and energy company that originated from the oil-from-coal technology developed in South Africa during the apartheid era. Around 50% of Sasol's profits are tied directly to the oil price, and the company has two key growth areas: its 50% stake in the Lake Charles Chemical Project (LCCP) in Louisiana, USA, and the development of gas resources in Mozambique. Sasol was recently awarded two new gas exploration licenses in Mozambique, covering approximate

Our opinion on the current state of 4SIGHT(4SI)4Sight (4SI) is a Mauritian-based company that focuses on investing in technologies related to the "4th Industrial Revolution," which includes developments in cyber-physical systems such as cloud computing, the Internet of Things (IoT), and smart factories. The company operates in two main areas: mining and manufacturing, and software, cloud, and enterprise solutions. It employs around 400 people and serves 3,000 customers across 30 countries, with 42% of its income coming from outside South Afr

Our opinion on the current state of NEPIROCK(NRP)Nepi-Rockcastle (NRP) is a R124 billion real estate investment trust (REIT) that operates over 56 shopping malls across nine central and eastern European countries. The company's portfolio is concentrated mostly in Poland (24%), Romania (35%), Slovakia (9%), Bulgaria (8%), Croatia (5%), and Hungary (11%). Nepi-Rockcastle has a total portfolio valued at €6.3 billion (R124 billion), making it the largest property share on the JSE. The share price has experienced significant volatility in recent y

Our opinion on the current state of RENERGEN(REN)Renergen (REN) is an integrated alternative energy company focused on renewable energy projects in Africa, particularly in liquified natural gas (LNG) and helium. Listed on the JSE in June 2015, Renergen has faced ongoing financial challenges, reflected in consistent losses and a falling share price. Despite this, the company has been making strategic investments to position itself as a key player in the energy and helium sectors. The company raised R125 million through a fully underwritten rig

Our opinion on the current state of SANTOVA(SNV)Santova (SNV) is an international logistics company with a presence in 19 offices across 7 countries. The company goes beyond traditional logistics by offering comprehensive supply chain management services, which include the design, implementation, coordination, control, and monitoring of international supply chains. Through a virtual client-centric information system, Santova facilitates inventory management and provides enhanced tracking and tracing services. Santova has a global reach, wit

Our opinion on the current state of STANBANK(SBK)Standard Bank (SBK), founded 160 years ago, is South Africa's second-largest bank by market capitalisation, after First National Bank. The bank has significant operations across Africa, which now contribute 34% of its headline earnings. 20% of Standard Bank's shares are owned by the Industrial and Commercial Bank of China (ICBC), and it owns 40% of ICBC Standard Bank (ICBCS), previously Standard Bank Plc in the UK. The bank has faced operational challenges due to load-shedding in South Africa a

Our opinion on the current state of REINET(RNI)Reinet (RNI) is an investment holding company with its primary asset being a 2.12% stake in British American Tobacco (BAT), valued at around $1.8 billion, which now represents 31% of its net asset value (NAV). This is a significant decrease from the 85% share of NAV BAT held ten years ago. The reduction in BAT's contribution is largely due to the decline in its share price, driven by a more challenging legal environment for tobacco, particularly in the US, where the Food and Drug Administration

Probabilities of further upside on JSE's Vodacom share price?JSEVOD fell off a cliff from its all-time high of R186.99 in August 2017 and left a gap between R177.10 and R168.81 while going on a downward trajectory, reaching lows of R90.70 around March 2020. We then saw a bounce rally taking us to R163.48 before sellers stepped in around April 2022 to have price sniff R85.44 by April 2024. We have seen a positive recovery since then, with price painting what seems to be an Inverse Head & Shoulders pattern. The bullish crossover of the 50 and 200 Day EMA h

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Our opinion on the current state of PSG-KST(KST)PSG Fin (previously PSG Konsult) is a well-established financial services group that originated from PSG's stockbroking business and now offers a broad range of financial services, including financial planning, unit trusts, healthcare, short-term insurance, and estate planning. PSG retains a 60% stake in the company. In its results for the six months ending 31st August 2024, PSG Fin reported a 28% increase in recurring headline earnings per share (HEPS) and a 16% rise in assets under managemen

Our opinion on the current state of PREMIER(PMR)Premier is a food producer that was spun out of Brait (BAT) through an initial public offering (IPO) and separately listed on 24th March 2023. The IPO raised R3.6 billion at a share price of 5382c per share, with Brait retaining a 47.1% stake in Premier. Despite challenges, Premier has successfully mitigated the impact of loadshedding on its operations, and the associated costs did not significantly affect its financial performance. In its results for the year ending 31st March 2024, Premier re

Our opinion on the current state of PICKNPAY(PIK)Pick 'n Pay (PIK) is a retail grocery chain with over 2,000 stores, primarily in South Africa but also operating in other parts of Africa. The company was founded by Raymond Ackerman in 1967 and became the dominant grocery retailer in the country before being surpassed by Shoprite/Checkers. Richard Brasher previously served as CEO, but Sean Summers, who led the company from 1999 to 2007, has returned to the role of CEO in an effort to restore the company's competitive edge. In its results for t

Our opinion on the current state of MONDIPLC(MNP)Mondi (MNP) is a large international paper and packaging company that originated in South Africa but now operates in 30 countries, employing 26,000 people across approximately 100 sites. The company is involved in the full spectrum of packaging, including owning and managing forests, and producing wood pulp, paper, and plastic films for a wide variety of packaging solutions. Mondi is known for its professional management and broad operational scope. The company was impacted by the Ukraine crisi

Our opinion on the current state of INSIMBI(ISB)Insimbi (ISB) is a group that manufactures and supplies specialist products to the industrial sector. The company is involved in sourcing, buying, packaging, and processing ferrous and non-ferrous alloys, refractory and foundry materials, as well as plastic blow-moulding and injection moulding. Insimbi also recycles metal alloys and provides technical support to users of its products. In its results for the six months ending 31st August 2024, the company reported an 11% decrease in revenue and

Our opinion on the current state of DRDGOLD(DRD)DRDGOLD (DRD) is the JSE's oldest listed company, having been listed in 1895. It has evolved into a gold surface treatment operation, focusing on re-treating surface dumps with traces of gold that can be profitably extracted using modern methods. DRDGOLD's all-in sustaining cost of extraction is just over R627,247 per kilogram, compared to an average received gold price of R917,996. The nature of surface treatment operations presents lower risk than traditional underground gold mining, as it has