Weekly Game Plan

July 31, 2023
Josh Viljoen
Josh Viljoen

Unpacking what I will be doing with my portfolio this week and where I see oppurtunity in the market


Last week was relatively quiet week for me in the markets and I was mostly sitting on my hands. This was however mainly due to me being rather busy at the time and having limited time to explore and exploit any market inefficiencies I identified. 


My article on Gemfields in the financial mail was released on Thursday however magazines mostly hit the on shelves Friday morning. Following this there was a massive spike in volume traded which does not seem to be coincidence. Given that this is not a widely covered stock with a relatively small market cap and news is likely to move the needle.


The only actively in my portfolio last week was adding to two existing positions namely Argent Industrial (JSE:ART) at a price of R15.98 and British American Tabaco (JSE:BTI) at a price of R592.95. The target was to top up on Argent under R16 a share and BTI under R600 a share. BTI additionally posted half-year results and the numbers were strong. Revenue was up 4.4% or 2.6% when forex gains are stripped out and EPS was up 5.3% when forex gains are removed. I continue to like the company as a defensive anchor to a portfolio and at current prices it produces strong yields when free cash flow yields and dividend yields are considered.


Going into the week ahead I plan to trim my position on Absa. I recently posted a trade idea on Absa on FinMeUp for my premium subscribers. The trade has now hit my take profit for a return of 11% in under a month. When this is return is annualized the results are eye-watering. That is not to say that this return can be replicated month in and month out but it is important to note that a return of 11% in one month is far more valuable than a return of 11% in 12 months.


On my watch list for this week are the following:


  1. Gemfields (JSE: GML) - looks attractive around R3.50 and should dividend yields be sustained the dividends alone will cover the stock price in 5-years
  2. Master Drilling (JSE:MDI) - the stock has sold off in the past two months on little news or update. I continue to like the stock and at current prices it looks attractive with a PE under 5 and dividend yield of 6.78%.
  3. USD ZAR - the rand has showed strength against the dollar this month coming all the way down to R17.27. I will look to transfer money to by EE USD account at these levels or alternatively I will buy the ABSA New Wave USD ETN to take advantage of these levels.  



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