6 replies to this topic

[Geko]

Not all - have a look at Santova (SNV)...

[Jack5]

haha yes disclaimer is for people who follow blindly and don't do their own research.

 

Agree all transport companies are hurting right now, but really think Grindrod is under valued. Also transport is the backbone of the economy, if transport fails it means the whole economy has failed because trade requires transport.

[The Stig]

I think 2016 is going to be a tough year for SA stocks. The Rand will probably weaken further, commodities don't seem to be recovering, the drought is affecting food prices and consumers will be under pressure with more interest rate hikes.

 

If I had to choose to invest next year I would go with solid companies that have a strong balance sheet which can withstand the weak economy.

 

I would pick these 5 shares:

 

MDC: has international exposure so is sort of a Rand hedge, people need to go to hospitals and medical aids also cover costs if you have one

APN: Also defensive, people will continue to need medicines no matter what. and this share has taken a knock recently

GND: Bit of a long shot as it would depend on a commodities recovery, but has almost no debt and is a solid business

GPL: This one is a bit risky, but I think the burger king investment should start paying off next year.

BIL: Probably the most solid resource company around, but will also depend on prices recovering so also risky

 

The above is only my opinion and I take no responsibility for losses incurred.

Haha awesome disclaimer. Grindrod is a long shot. I spoke to Ian Lourens of OneLogix last week and he revealed that this economy is hurting the logistics guys, especially considering the contribution of vehicle imports. GPL is a nice one and one could even look at SUI. The others make up the backbone of my portfolio, solid companies like you said. IMO

[Jack5]

I think 2016 is going to be a tough year for SA stocks. The Rand will probably weaken further, commodities don't seem to be recovering, the drought is affecting food prices and consumers will be under pressure with more interest rate hikes.

 

If I had to choose to invest next year I would go with solid companies that have a strong balance sheet which can withstand the weak economy.

 

I would pick these 5 shares:

 

MDC: has international exposure so is sort of a Rand hedge, people need to go to hospitals and medical aids also cover costs if you have one

APN: Also defensive, people will continue to need medicines no matter what. and this share has taken a knock recently

GND: Bit of a long shot as it would depend on a commodities recovery, but has almost no debt and is a solid business

GPL: This one is a bit risky, but I think the burger king investment should start paying off next year.

BIL: Probably the most solid resource company around, but will also depend on prices recovering so also risky

 

The above is only my opinion and I take no responsibility for losses incurred.

[Magnet]

Most of the larger companies at the moment are all way over bought.  I would suggest get into good small caps or even good resource stocks (with zero debts) as we are most probably nearing the bottom of the cycle but that would depend on your level of risk.

[RaymondH]

Maybe have a look at TOR - the share price has not done much but the business has: HEPS 165%, EPS 119%, Turnover 314%

Hard to say what the share price will do as there is no premium on the construction industry, but if they continue like this the market must wake up eventually.

 

If you want safe long term larger cap, PSG, but they have run up too much lately and looks expensive. In fact most large caps looks expensive.

[LouahZA]

Hi,

Sorry I don't post a lot just come read a few headliners now and then, but I was just wondering what do you guys think 2016 is going to do.

what are the safe bet long term companies I should be looking at?