Daily Market Blog: Naspers, they own other "stuff"


"first of all, the company is investing heavily in their businesses, 4 billion Rand to be exact, up 35 percent from the comparable six months. Here is the revenue spread, Internet is 58 percent of revenue, Pay TV business represents 32 percent of revenue and the balance (10 percent) is Print. That is likely to be less and less in the coming years, trading profits at the print business was 96 percent lower than the prior reporting period."

To market, to market to buy a fat pig. A very, very modest gain for blue chips on Wall Street last night, the other indices, it was a whole lot better, including for technology stocks. I bet it is just a matter of time before we start seeing the headlines like "market fatigue setting in" or "bulls running out of steam", or perhaps there will be the good old Santa Claus rally, as mystical as the bearded man himself, for the kids that is. I am planning to get little, I have everything, right? We can always have new things, whether or not they are useful, that is another story. Mr. Market saw another closing high for both the S&P 500 and the Dow Jones Industrial, the nerds of NASDAQ have around 300 points, or 7 odd percent from here to reach an all time high.

According to the WSJ markets data page, the NASDAQ trades on a 19.85 times multiple forward, the S&P 500 on a 17 times multiple forward, meaning that the earnings of the collective shares relative to their weightings, versus the index level, which can be seen as a price. We can work backwards, the S&P 500 closed at 2069, divide by 17, you get to 121.7 Dollars. The yield is only 1.9 percent currently on the S&P 500, versus the ten year yield of 2.304 percent. You can see that something has happened here, the market is expecting better and better from corporate America, and by corporate America essentially I mean all the listed businesses there. The UK and the local market are strikingly similar in that many of the listed businesses in London and Johannesburg do not represent the economy, that is not so much the case in the US, around 70 percent correlation there. Japan seems highly correlated.


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Stocks which we currently recommend

Amazon.com is the world's leading online retailer.

Apple is global leader in tablet and smartphone technology.

Aspen is a rising global star in generic pharmaceuticals.

BHP Billiton is the world's largest industrial commodity mining company.

Bidvest is a diversified services company, which may re-organise its portfolio.

Cerner provides IT solutions in the healthcare industry.

City Lodge is a growing mid-priced hotel group in urban areas of SA.

Discovery is a healthcare services administrator and life insurer.

Famous Brands is SA's largest quick-service restaurant group.

General Electric is a diversified investment holding company.

Google is the world's biggest search engine and online advertising platform.

Johnson & Johnson is the largest consumer healthcare and pharma company.

L'Oreal is a world leader in the manufacturing and sale of beauty products.

Luxottica is the world's largest branded sunglass maker and retailer.

MTN Group is an emerging markets mobile telecoms giant.

Massmart is a big-box discount retailer in Africa, now 51% owned by Wal-Mart.

Mediclinic owns hospitals in SA, the UAE and Switzerland.

Naspers is an in emerging markets company focussed on digital TV & Internet.

Nike is a global designer and retailer of sporting equipment.

Omnia is a fertiliser and explosives producer.

Richemont is a luxury brands company expanding in Asia.

Sasol is a global player in chemicals and fuels technology.

Starbucks is a roaster, marketer and retailer of coffee.

Stryker makes hip and knee joint replacements and hospital beds.

Tiger Brands is a basic and branded food producer, expanding through Africa.

Visa is a global payments technology company.

Woolworths is SA's leading organic food retailer & clothing business.

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