Page 5 | Ideas and Forecasts on Stocks — South Africa — TradingView

Our opinion on the current state of SA-CORP(SAC)SA Corp (SAC) owns a group of 199 industrial, retail, storage, residential, and office properties in South Africa, plus a 50% stake in a joint venture in Zambia with three properties. The bulk of this portfolio is in retail (43%) and industrial (28%). The company has been facing challenges across its portfolio, particularly in its office and industrial properties, where it has been experiencing negative rental reversions. It is also exposed to the poor economic conditions in South Africa. Var

Our opinion on the current state of YORK(YRK)York Timber Holdings (YRK) is a forestry company that owns plantations and processing plants, as well as a wholesaling distribution network. It is the biggest player in the South African plywood and timber market. The company was founded by a Russian immigrant, Herman Katzenellenbogen, in 1916 and was listed on the JSE in 1946. The National Union of Metalworkers of South Africa (NUMSA) is the majority union at the company. York has been impacted by the general decline in the construction indu

Our opinion on the current state of STANBANK(SBK)Standard Bank (SBK) is 160 years old and is South Africa's second-largest bank by market capitalization, after First National Bank. It has widespread interests across Africa, which now contribute 34% of its headline earnings. 20% of its shares are owned by the Industrial and Commercial Bank of China (ICBC), and it owns 40% of ICBC Standard Bank—previously Standard Bank Plc in the UK (ICBCS). Following COVID-19, the bank had about 70% of its staff working from home. Like most businesses in Sou

Our opinion on the current state of HYPROP(HYP)Hyprop (HYP) is a leading property real estate investment trust (REIT) that specializes in high-quality shopping malls in South Africa, with some interests in Eastern Europe and Africa to the north. It owns some of South Africa's best-known shopping malls, including Rosebank, Canal Walk, Hyde Park, and Clearwater. The company has been impacted to some extent by the fall-off in consumer spending, reflected in lower trading densities. Currently, the share is trading at close to half of its net

Our opinion on the current state of RANGOLD(RNG)Rangold (RNG) is a mining exploration company with a strong asset base, which is now mostly in cash. This cash is being used to pursue legal claims and may also be applied to investment opportunities. Since the death of Brett Kebble, the company has been actively pursuing legal claims against various entities. In early 2011, it paid a dividend of 90c following a British court order against Paul Main, who was forced to repay GBP4m. In July 2014, the company was able to pay out a dividend of 22

Our opinion on the current state of EXXARO(EXX)Exxaro (EXX) is a BEE coal company with interests in iron and heavy minerals. It has operations in Australia, America, and Europe and is a provider of coal to Eskom's Medupi power station. The company has been working to increase coal production from 48 million tons to about 60 million tons by 2022, but this strategy might be reconsidered due to lower global demand for coal. Exxaro is a highly cash-generative operation that is usually profitable, depending on the price of coal. While demand f

Our opinion on the current state of ADVTECH(ADH)ADvTECH (ADH) is one of three listed commercial educational companies on the JSE (the others are Curro and its separately listed sister company, Stadio). ADvTECH has two divisions - a schools division (including Crawford, Trinity House, and Abbots) and a tertiary division (including Varsity College, Rosebank College, and a variety of specialist tertiary offerings). The group includes 109 schools and thirty-three campuses with 78,500 students. In the past, the company was supported mainly by i

Our opinion on the current state of CAFCA(CAC)Cafca (CAC) is a cable manufacturer that produces over 900 cable and transmission products. Most of its business is conducted in Southern Africa. The company is 70% owned by Reunert. Cafca is listed on the JSE as well as the London Stock Exchange and the Zimbabwe Stock Exchange. Cafca is also involved in recycling copper and other materials. In its results for the year to 30th September 2024, the company reported volumes up 10%, but revenue and operating profit in Zimbabwean Gold (ZiG) were l

Our opinion on the current state of MERAFE(MRF)This is a ferrochrome operation controlled by Glencore, which operates mines, furnaces, and smelters in Mpumalanga and Limpopo. The Glencore-Merafe joint venture can produce up to 2,3 million tons of ferrochrome per annum. Merafe gets 20,5% of the proceeds, and the balance goes to Glencore. The problem is electricity supply, because smelters require huge amounts of current. The 15,6% increase in Eskom tariffs last year was a major factor, and the current year's increase of just under 10% from

Our opinion on the current state of MPACT(MPT)Mpact (MPT) is a large producer of paper and plastics packaging in Southern Africa. It recycles paper and cardboard and makes corrugated cardboard containers for a variety of industries as well as polystyrene trays for the food industry. It has 20 manufacturing operations, with South African sales accounting for 86% of its business. It employs over 5000 people. The business is impacted by the general level of consumer spending (which has been depressed because of COVID-19 and was improving at

Our opinion on the current state of SUNINT(SUI)Sun International (SUI) is a casino and hotel operator with interests in South Africa, Chile, Peru, and recently, Argentina. The depressed economy in South Africa impacted the performance of South African casinos and hotels even before COVID-19. The company increased its stake in Sun Dreams in Peru by 10% to 65%. It also bought a hotel and casino in Argentina for $25,5m. The company invested R4bn in the Time Square casino near Pretoria, which was beginning to perform before COVID-19. The group

Our opinion on the current state of TEXTON(TEX)Texton (TEX) is a small real estate investment trust (REIT). The company owns forty-eight retail, industrial, and office properties, 55,4% of which are in South Africa and the balance in the UK. After reaching a high of 1235c in March of 2015, the share fell steadily to a low of 78c on 29th October 2020. This fall was exacerbated by the recent revelation that the company's share price has triggered a "default event," in terms of which the Public Investment Corporation (PIC) has decided to "put

Buy opportunity (ARI) TECHNICAL ANALYSIS Zone of demand/support was created during mid-May 2020 @ R125 to R133 Buy opportunity offered whilst price remains above R125 Stop loss below R125 Various targets: Short term 6-12 months Medium term 12-24 months Long term > 24months

Sasol (SOL) Upwards TECHNICAL ANALYSIS 1. SOL bounced from a supply/support zone that was created @ end Oct 2020 R71 to R75(marked in yellow. 2. Multiple short & long term BUY opportunity offered as long as price remains above R70 3. Short term = < 12 months 4. Long term is above 12 to 24 months TRADE IDEA 1. Buy with stop below R70 2. Once in a trade, give it time to develop.

Our opinion on the current state of Sea Harvest (SHG) is South Africa's most popular frozen fish brand with about 38% of the market. It was controlled by Brimstone, which had a 54,92% stake. Sea Harvest catches, processes, and freezes fish for local and export consumption. They acquired the business of Viking, which began 40 years ago and now employs 1 600 people with a fleet of 30 vessels operating in Cape Town, Durban, Hout Bay, Mossel Bay, and Maputo. Viking catches, processes, and sells horse mackerel, hake, pilchards, ancho

Our opinion on the current state of HARMONY(HAR)Harmony (HAR) was probably South Africa's most marginal gold mine until it got Mponeng gold mine working effectively. The development of this mine and its processing plant are expected to cost around US$2,8bn - and Harmony does not at this stage have its share of that cash (about R20bn). During 2021 the company purchased Mponeng gold mine for R4,2bn. Mponeng is the world’s deepest mine and has all the problems of ultra-deep level mining. The company is building a 30mw solar park in the Free St

Our opinion on the current state of MUSTEK(MST)Mustek (MST) is South Africa’s largest assembler of personal computers under its *Mercer* brand and also imports various computer products, including Samsung, Acer, and Microsoft. Historically, the company has traded well below its net asset value (NAV). The company has been exploring growth opportunities in the fibre-to-the-home market and has seen strong sales in cables supporting this sector. CEO David Kan has expressed optimism about the potential exponential growth in this area. Addition

Our opinion on the current state of HOMCHOICE(HIL)HomeChoice (HIL) is South Africa's largest home shopping retailer, operating through two divisions: retail and financial services. It offers a broad range of home appliances, clothing, fashion, footwear, and related products through showrooms and online channels. The share is tightly held, with over 92% of issued shares controlled by Richard Garrat and his family. A planned share issue, which would have improved liquidity, was shelved due to challenging retail sector conditions. This has left

Our opinion on the current state of METROFILE(MFL)Metrofile (MFL) is a company specializing in records storage and management, image processing, and backup services. Listed since 1995, it has a 57.4% Black ownership, with the Mineworkers Investment Company holding 38.64% and Sanlam 5%. The company's record management division operates 52 facilities across 27 locations, offering over 100,000 square meters of office and warehousing space. A US-based firm, Housatonic Partners, made an offer to buy 100% of Metrofile at 330c per share but delayed

Our opinion on the current state of SANTAM(SNT)Santam (SNT) is South Africa's largest short-term insurer, holding about 22% of the market. Unlike life insurers, it does not engage in endowment insurance, annuities, or investment-linked policies. Instead, Santam insures assets such as buildings and vehicles, as well as individuals against risks they cannot afford, such as income loss due to disability or death. The company covers the first R150m of any claim before relying on its reinsurance policy. It has Level 1 BEE status and employs ov

Our opinion on the current state of AFRO-C(ACT)Afrocentric (ACT) is a black-owned investment holding company that focuses on health administration and insurance. Sanlam recently acquired 28,7% of the company, which will help with its financing and marketing. The group owns: - 100% of Pharmacy Direct (a courier company). - 100% of Curasana (a pharmaceutical wholesaler). - 100% of Activo Health, having recently acquired the remaining 74% for R588m in cash and shares, at a multiple of 9,3 times Activo's most recent after-tax profit (R6

Our opinion on the current state of BRIMSTON(BRT)Brimstone (BRT) is a black-controlled investment holding company with a diverse portfolio of holdings. It owns: 1. 54,2% of Sea Harvest, which is a listed fishing company and has a market capitalisation of just over R4,5bn. 2. 100% of Lion of Africa, a loss-making insurance company, which decided in November 2018 to cease operations and close its doors. 3. 100% of House of Monatic, a loss-making clothing manufacturer. 4. 24% of Oceana, the largest fishing company in South Africa, with

Our opinion on the current state of DISCOVERY(DSY)Discovery (DSY), developed and built by Adrian Gore over the past 25 years, offers the A/B income group of people a matrix of financial services that are inter-linked and cross-selling. Thus, a customer can begin with his/her medical aid and then add a variety of insurance products and, most recently, personal banking products. Discovery's "Vitality" concept, which rewards clients for looking after their health in various ways, is extended to their driving record and a rewards system that ens

Our opinion on the current state of CLIENTELE(CLI)Clientele Life (CLI) is a small insurance company selling short- and long-term policies and underwriting insurance products. Their products are sold through agents and brokers as well as through tele-sales. On 3rd November 2023, the company announced that it had acquired 1Life Insurance for R1,914bn, to be paid by issuing 117,815,756 ordinary shares in Clientele. In its results for the year to 30th June 2024, the company reported headline earnings per share (HEPS) and net profit down 4%. T