5 Hot JSE Stocks That Even a Value Investor Can Love

Faddish JSE shares that are okay to love

I hate to jump on bandwagons.

When it comes to investing, however, a mountain of evidence suggests that running with the herd may be more profitable than bucking the trend.

Repeated studies confirm that stocks with momentum – those whose share prices have recently outperformed the market – tend to outperform those that haven’t.

Here are a few high-flying South African shares that can make the trend your friend while minimizing downside risk.


7 Rock Solid South African Stocks That Pay Big Dividends

Photo by Andrew Cook

Looking for shares that provide a steady income and also the prospect of solid growth?

Here’s a list of seven of the highest-yielding dividend-payers listed on the JSE and a simple screen to use when looking for similar companies on other African stock markets.


How to Invest on the Johannesburg Stock Exchange

Photo by Henti Smith

South Africa is far and away the most economically developed of African states, and, as such, will likely be the continent’s economic gateway for the foreseeable future.

Truth be told, however, the Johannesburg Stock Exchange (JSE) isn’t exactly the most bullish of markets these days. In fact, the market is now at its lowest point in nearly two years.

But this isn’t necessarily bad news for value investors. Falling prices mean an increasing number of bargains are on offer. Earnings multiples are dropping and dividend yields are rising.

And because the Johannesburg Stock Exchange is one of the most sophisticated in the world, investors can scoop up these deals with a click of their mouse. The market’s accessibility and convenience make it an ideal place for new Africa investors to get their feet wet.

Here’s how to get started.


Is Africa’s Greatest Grocer a Bargain Stock?

Photo by Nchenga

If you’ve ever traveled in Southern Africa, I’m sure you’ve spotted a Shoprite store. Whether it be the bright red logo of their eponymous supermarkets, the upscale suburban Checkers stores, or their Hungry Lion fast food joints, the company’s dominant market presence is difficult to miss.

Clearly, Shoprite feeds a continent on the rise.

This reality is anything but revelatory to Africa investors. The company’s share price has risen exponentially as the narrative of the continent’s emerging middle class took hold.

The stock now sports a P/E ratio of 27. Is it worthy of the hype?


10 South African Stocks Poised to Beat the Market in 2013

Photo by Dave Dugdale

It’s time to stick my neck out.

I’ve talked a lot about the past performance of various African stocks, and I’ve asked a number of local experts for their favorite listings. But I haven’t often gone out on a limb and made picks of my own, and many of you have noticed.

So, it’s only fair that I go on record with my best bets.

Here are my top South African stock picks. I expect that, on average, they will outperform the Johannesburg Stock Exchange All Share Index over the next 12 months.


6 (More) Reasons to Invest in South Africa

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Yesterday, Jan Schalkwijk, CFA of Africa Capital Group began to make the case for investing in South Africa. Today, he bolsters his argument with six additional reasons to be a South Africa bull.


The Case for Investing in South Africa

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South Africa may not be getting much good press of late, but Jan Schalkwijk, CFA, of San Diego-based Africa Capital Group believes its stock market remains promising. He explains why in this guest post.

South Africa offers investors frontier markets-type growth, but with more liquidity, more mature capital markets, greater data richness and greater transparency. Although markets such as Nigeria, Kenya, and Ghana hold great potential for sustained high growth, South Africa is the most mature stock market on the continent.


Seven Paying Six: High-Yield South African Stocks

Photo by Andrew Cook

Let’s face it. For all the talk of “being greedy when others are fearful” and “buying when there’s blood in the streets” nobody delights in seeing their portfolio value swing southward.

That’s why I love stocks that pay a steady, consistent dividend, and this week I came across some generous South African firms whose shares currently yield more than 6%.


Cash Out On UEPS?

Photo by Cian Ginty

Johannesburg-based Net 1 UEPS Technologies (UEPS.US and NT1.SJ) reported its third quarter 2012 earnings earlier this month.

Let’s get acquainted with the stock and see whether it represents a compelling opportunity for Africa investors.


18 South African Stocks That Trade On Wall Street

Photo by Damien du Toit

I’m a big fan of investing directly in African stock markets. The exchanges in Accra, Lagos, and Nairobi generally offer better bargains than what you find listed on the NYSE or Nasdaq. That said, it’s definitely not for everyone. Opening up foreign brokerage and bank accounts can be a real […]