While there has been much hullabaloo about the recent pronouncements by major ratings agencies, savvy investors appear to be looking beyond the JSE Top 40 to find returns for their portfolios… and some have enjoyed spectacular results from unlikely places.
Moneyweb – in the form of our Click-A-Company offering – has a power data tool which allows investors to find information on JSE-listed shares. Through traffic to this section, we are able to identify shares which are front of mind for investors.
Typically these have been dominated by your major resource (specifically Anglo American, BHP Billiton), tech/telecoms (Naspers/MTN) and your banking and insurance groups, but April has thrown up some fascinating surprises.
The top 10 most-searched for shares in April were:
Sibanye is an unusual name to see among the top 10, but there is a lot of interest in its Stillwater transaction, a deal which many investors describe as a game-changer for the company.
What becomes particularly interesting is when one delves a little deeper into the Moneyweb data.
The eleventh most searched-for share was little known Tawana Resources, which returned 130% in April and 266% over the past 90 days. The company, which provides investors with access to the potentially lucrative Lithium market, briefly halted trading in its shares on April 26 2017 ahead of its announcement of a capital raising which was announced on the 28th (https://www.moneyweb.co.za/mny_sens/tawana-resources-nl-capital-raising-completed-to-commence-capital-works/).
In 18th place is chemicals group Rolfes. A popular choice with small-cap managers, this stock has returned 16% over the past 90 days. Much of the interest in Rolfes in April was driven by this opinion piece penned by Charl Botha.
Both Tawana Resources and Jubilee Platinum popped up on the Moneyweb Insider Gold sentiment report in the last week of March. Jubilee Platinum is again receiving an above-average number of searches as the 36th most-searched for share on Moneyweb. That puts it ahead of platinum majors like Impala Platinum, Anglo Platinum and financial heavy-weights like Discovery.
Jubilee has returned 32% in the last 90 days.
What are we watching?
Hindsight is a perfect science and the real question for investors and traders will be about opportunities to come in the future. These are some of the opportunities:
The last 60 days in South Africa have not been conducive to enthusiastic support for new listings on the JSE and this is reflected in the new Brian Joffe listing Long4Life. The share was off just under 10% from its opening price but Moneyweb readers are keeping a close eye on it as the 27th most-searched for share in April and the 19th most followed share in the last week of April.
AlphaWealth small-cap fund manager Keith McLachlan continues to be bullish on the outlook for Consolidated Infrastructure despite the stock delivering an underwhelming set of financials in April and an 18% sell-off.
The banking group shed 20% in April 2017 but is currently the second-biggest holding in the Cannon Asset Managers Mid- and Small-Cap fund. The Sasfin performance was exacerbated by a sell-off in banking shares following the downgrade announcement and going ex-dividend in April but the counter trades on a price-to-earnings ratio of 7.6% and a dividend yield of 5.2%.
Trematon Capital Investments
As recently highlighted by small-cap analyst Anthony Clark, this is a stock which gets next to no analyst coverage but Trematon may be worth monitoring. The group is involved in a number of different operating divisions including property (including the Club Mykonos resort), education, and property rental management. The company reported a net asset value of R2.99/share – a premium to where the share is currently trading – and management have been regular buyers of the illiquid shares since the start of 2017.
Writer holds shares in Sasfin and Consolidated Infrastructure Group.
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