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Mboweni's new labour Bill could bust the... Molope Bakeries a hot JSE prospec... New controversy brewing over Transnet pl... Disparities in sales and income... Basket of food groups offered to JS... Nestlé strike threatens dea... Katz report offers few surprise... A whole lot more to brighten up your Sun... Credit growth dims hopes of rate cu... Wheeling and dealing could haul in a big... N-class shares: dummy stocks or real val... Rebhold the star in 29% rise for BT sha... Car sales are up, but not for long...
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Rebhold the star in 29% rise for BT share portfolioPortfolio managers boasting great returns often mask a poor showing with one super-share IN THE first quarter of 1997 my hypothetical portfolio is showing growth of 29% against a 6% improvement in the JSE's all-share index. This growth assumes that an equal amount of money was invested in each share. If the calculation is done on the basis of an equal number of shares in each counter, the portfolio is up by only 18%. This is something to look out for when portfolio managers try to entice your business by boasting remarkable figures: ask how they arrive at them as one or two super-performers can mask a below-par showing. Of my 10, eight shares are firmer at the end of the March quarter and two off. I have hopes for further growth but recommend getting out of drastic underperformer Plessey. Top of the pops is Rebhold, which at 720c is 163% above January's 274c. The company has captured the imagination of the market and every move is applauded. Clarity on the deregulation of the liquor laws should help investors to understand Rebhold's business even better and I see further growth in the foreseeable future. Even as I write, Rebhold announced three acquisitions: Trans Global Freight, McFoods and Boland Wine, paying about five times annualised forward earnings. Investment trust Baobab is passing on its stake in personal computer leader Mustek to members and its price has to be adjusted for this. Baobab was R24.10 when I recommended it in January. It is now R25.10 after passing on Mustek rights. The nilpaid letters (127 issued per 100 Baobab) were R12.50 and the takeup price on Mustek 133c. So holders of Baobab in January are now more than 70% better off. The quartet of financial services companies have all fared well: Gensec is 20% higher at R56.50, Investec 18% at R138, Sage 22% at R21.90 and First National 15% at R27.40. I'd keep them all. Premier Group was looking up until negative press damned it in the week before Easter. It is nevertheless 9% higher at 656c. There appears to be plenty of room to tighten its operations further and I'd stick with it. From R32 in January, Randgold has been to R40 and back to R34.75 in a quarter during which the gold price has thwarted all attempts at prediction. It also endured some negative publicity over disclosure of information to shareholders in respect of Randgold Resources but was exonerated. Randgold is still very much for my money. It added a net 9% during the quarter. Portfolios are all about risk-spreading and this one is no exception. NSA has edged down 10c (less than 1%) to R15 principally on the poor showing by Housewares, which gave a profit warning and crashed out of bed. NSA is to pass on its holdings in both Housewares (22.75/ 100 NSA ) and Educor (24/100) to members registered by this Friday and once unencumbered should revert to a growth pattern. I am inclined to recommend selling the unbundled lots and locking in some profit - Housewares is out of favour and Educor looks pricey under a cautionary. But horror of horrors - Plessey (in at R10.50) has lost almost a third of its market capitalisation after poor results, worse prospects and absence of confidence and should be sold while it still fetches nearly 720c. While scouring the market for potential tips early this year, everyone I spoke to liked information technology as a sector but none could make the definitive recommendation. In retrospect it has been a poor first quarter for almost the whole sector. Among the 14 tickey-stock tips - which should be seen in that context - 11 are up: Prestasi from 176c to 268c, Sasani from 75c to 156c, Advtech from 280c to 530c, Armato from 250c to 460c, King is up 10c at 156c, WBH Ovcon from 274c to 385c, Macadam from 670c to 1 040c, Reggies from 210c to 280c, Corpgro is up 8c to 35c and Rooiberg from 300c to 525c. Monex is down 30c to 370c and the Frame pair are roughly 10% weaker. Seeff was absorbed into Captall, which is well off its high at R26.50.
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