Trades I’m currently looking at:
CLS : Short around R189.00 or better, results out on Thursday @ 08:00. We think a bit to high valuations is priced in here. Currently there is 9 analyst recommendations on Reuters terminal, with no Strong buy/Buys, 5 Hold, 3 Sells,and 1 strong sell. Average price target of R154.79
BVT: think valuations is still a bit to high. Currently in a bit of sideways trading. So we look to short around R234, take profit around R220.
ANG: CEO announced stepping down and joining Vendanta as new CEO, any possible synergies? This is my preferred hold in the gold producers. If gold price can break above $1350 we should see a bit of a pop?
SHP : Been lagging, still my preferred hold in the retailers,think decent entry point for a outright trade, or pair with the higher valuation retailers- See CLS above
BIL : My preferred hold in the mining sector. The diversified miner will report Q3 production report on Thursday. Currently in a bit of overbought territory, but with $ remaining weak we should still see upside in commodity space. Risk is that government will appeal the Mining Charter decision as reported yesterday. This is negative for all local miners ( Remember June last year ) Although BHP exposure to SA is kept at min. Upside is potential sale of Oil business( share price positive ) that can be announced anytime from now. Buy on any share price weakness.