The State of the Allshare – October 2017
October 3, 2017From the Dealing Desk – The Retail Sector
November 3, 2017I often get asked by my clients how you look at the whole market and know which shares to trade. So I decided to give some insights on how to keep an eye on the markets. Firstly I suggest start by compiling a good watchlist of shares that you want to follow and have done some research on.
I suggest do at least the following research in the shares you want to follow in your watchlist:
- Look for consistent earnings growth and cash flow (5 years of consistent growth)
- Avoid shares with excessive debt
- Look for shares with proven management (Aspen, bidvest, Shoprite etc)
- Look for shares with a competitive advantage if possible
When setting up a watchlist don’t have too many counters but try and cover all the sectors.
I have a list of shares I follow which I will share with you today. This list changes from time to time and changes are made when shares fall out of favour due to earnings misses or downgrades.
| Sasol | Anglo Gold | Aspen |
| Biliton | Harmony | Discovery |
| Remgro | EOH | Woolies |
| Richmondt CFR | Datatec | Steinhoff |
| BTI | Tigerbrands | Mediclinic |
| Firstrand | AVI | Nedbank |
| Bidvest | Naspers | Sanlam |
| MTN | Coronation | Mondi ltd |
| Shoprite | PSG | MrPrice |
| Old Mutual | Investec | Bidcorp |
| RMI | Sappi | Momentum Holdings |
Keep in mind when trading a balanced equities portfolio or a short term trading portfolio your watchlist will be similar. With the short term trading however I suggest trading with trends and look for shares to buy with an upward trend and sell short the shares with a down trend.
Next time
We will have a look into a different aspect of the equities markets with a focus on the retail sector.
Our Equity Trading Mentorship gives practical, hands on guidance on how to use a tested investment strategy on the JSE, click here to learn more
[users number=”1″ id=”118″]
