How to profit from sentiment surveys


Every week, the American Association of Individual Investors (AAII) survey their members asking one question, “I feel that the direction of the stock market over the next 6 months will be up (bullish), no change (neutral), or down (bearish)?”. The data is published every Thursday. The chart below shows the average compound annual return from … Read on

Technology companies are more expensive than you think


The main differences between a company’s income and cash flow statements are timing issues but over time, cumulative net income should equal cumulative free cash flow. If free cash flow is consistently less than net income, it may indicate deteriorating earnings quality and since investors pay many multiples of annual earnings, the quality of earnings … Read on

Open letter to the Board of Franklin Resources


  16 November 2018 Board of Directors Franklin Resources Inc One Franklin Parkway San Mateo California 94403 Dear Board of Directors, Unlocking the value in Franklin Resources “Franklin” Franklin has substantially under-performed its peer group over the past 5 years and currently has the lowest broker ratings among peers with only a single “Buy” recommendation … Read on

Naspers and its layers of risks threaten SA savers


As any shareholder in the Russian companies, Yukos or Sistema, or MTN in Nigeria or Acacia Mining in Tanzania may tell you – Be very careful of owning companies in countries with all powerful governments that control the judiciary and might not respect property rights if the Government isn’t a co-shareholder. When an investor buys … Read on

The correlation between currencies and corruption


The 49% plunge in the Turkish Lira against the US Dollar over the past year may be all over the news, but it is far from alone.  The Argentinian Peso has slumped 41%, the Brazilian Real 17%, the Russian Rubel 12% and the Venezuelan Bolivar has collapsed 100% as its Government slashed 5 zeros off … Read on

Biznews interview 21st February 2018


This special podcast is brought to you by Ranmore Fund Management. Hi, I’m Sean Peche, I’m a Portfolio Manager, and CEO of Ranmore Fund Management and the fund I manage is the Ranmore Global Equity Fund. Sean thanks for chatting to us today. Now you started out at Old Mutual Asset Managers in South Africa … Read on

Embrace short sellers


“Embrace short sellers” is my message to those who are up in arms over Viceroy’s report and short position in Capitec and here’s why. The sole purpose of financial markets is to allocate capital between those parties with excess cash (investors) and those companies needing cash. It is neither in the interests of investors nor society … Read on

What Steinhoff shows us about the dangers of exchange controls


The decimation of the retailer’s share price highlights the risks of extreme concentration of domestic unit trust holdings in a relatively illiquid market.   The 92% collapse in Steinhoff’s share price over the past 3 weeks due to suspected accounting irregularities has resulted in a $16bn loss of market value to the company’s equity investors, … Read on