Capital Gain

Simon’s weekly wrap: A commodity supercycle and when to sell a winning share

Published: in FINANCE by .


Australia put the squeeze on Google (Alphabet) and Facebook for the links they carry to news articles. Initially Google backed down and agreed to pay but Facebook instead blocked all links to Australian news websites before they also backed down and offered money. I spoke with Henry Biddlecombe of Anchor Capital on how much of a larger global threat this may be to the two tech giants.

Jubilee Metals Group has seen its share price increase seven-fold in the last two years, and I spoke to Petri Redelinghuys, founder of Herenya Capital Advisors, about what the company is doing to justify this share price explosion. We also touched on the myth of ‘once-in-a-life-time opportunities’ as they seem to occur far more regularly.

One of the dilemmas an investor has is when to sell a winning stock. I asked Mia Kruger of Kruger International how they manage it. Her comment was that having got a great stock at a good price she was not in a hurry to sell even as it appeared expensive, especially if it had price momentum behind it.

Resource stocks are having a great week with Thursday seeing the Resi10 index up almost 5.5% on the back of great results from Anglo American and Impala Platinum. I spoke with Nesan Nair from Sasfin on his view of the supposed commodity supercycle. He is certainly bullish on our locally-listed resource stocks even as the index moves within 10% of the 2008 all-time highs.

Also this week:

AECI CEO Mark Dytor unpacks the company’s results as geographic diversification pays off.



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