Views on Life & on Equity Investing

Wonder, Wealth & Abundance

South Africa – Operation Johannesburg Stock Exchange

with 2 comments

In the previous post here I insinuated that South Africa is relatively more mature market in all of Africa, and that, finding multi decade secular structural opportunities is not easy – or at least those structural stories exhibit cyclical patterns along with commodities.

A correction : South African exchange is one of the most expensive, I mentioned that MCAP / GDP for South Africa at 160% puts it at top expensive percentile. I was wrong, they are 2012 numbers.

In 2014 JSE Market Cap is roughly 1 Trillion USD, current South African GDP of 350 Billion USD resets the above equation to 300% ( 90% India, 115% USA, 24% Bangladesh, 15% Nigeria), making is incredibly more expensive as a broad average yardstick.

However, I still believe that South African route can be more stable of the whole lot in terms of volatility.

SA economy has shrank in the past two years from 403 Billion USD to 350 Billion USD on account of mining slump.

Johannesburg Stock Exchange had 450 companies listed (Enough to keep me busy for next two months) I have had a scan of 50 companies and its not hard to find a few that are aggresive on expansion outside South Africa.

A software product company Adapt IT Holdings (astounding compounding @ 90% cagr in past five years) at 25 times earning and a few stalwarts in restaurant business like Famous Brands and Spur Corporation also around 20-25 times can offer multibagger returns. All having decent ROE (>25%), negligible or no debt, solid balance sheet and kicker of overseas expansion. More later….when I have scanned the rest of 400 businesses..


 

.




Written by amitdipsite

January 5, 2015 at 3:53 am

Posted in Uncategorized

2 Responses

Subscribe to comments with RSS.

  1. Sir.recommmend 1 indian multibagger stock.

    Srikanth shivraj

    January 8, 2015 at 10:35 am

  2. Srikanth dear,🙂 Everything in India has already become multibagger in 2014, pick any stock.

    Please let me know how much return do you want from stock market per annum ?

    Thanks

    Amit Arora

    January 8, 2015 at 10:40 am


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: