Download Red Hot Penny Shares - SilverBridge Holdings

Issue 179 / June 2016
Red Hot Penny Shares
Make big money from small stocks in 12 months or less!
This could be your next ten-bagger
The last time I was this excited about
a share it went from 130c to R13 in
four years
Back in 2012 I discovered a little known IT company. It was too small for investment funds to worry about, the
media didn’t bother featuring the company’s results and the share was completely undervalued.
The share I’m talking about was Adapt IT. It soared from 130c in 2012 to R13 this year.
The same excitement I had when I first tipped Adapt IT back in 2012 is exactly what I feel today.
You see, I’ve discovered another tiny IT company that’s got the same potential as Adapt IT.
Just like Adapt IT was, its cash flush. The company has nearly half of its market value in cash!
Adapt IT’s success came from the company starting out with a niche IT system it sold to sugar mills. First in
South Africa, then Africa, then the world. And from here it expanded into other product offerings.
The company I’ve found today followed the same route. It built a software system that it rents out to financial
services firms in South Africa. Then it expanded into Africa…
If you’d like to find out more about the company and why I believe it has ten-bagger potential read on.
The five indicators that show Silverbridge is set for big gains!
Silverbridge (JSE: SVB) is a JSE listed IT company similar to Adapt IT in its early days. Which is why I’m
comparing the two shares neck to neck today. Here’s the five reasons I believe
Silverbridge will follow the same route as Adapt IT did:
Inside:
The 5-Point checklist
to picking ten-baggers
Page 8
Pan Af and SA’s
looming junk status –
Are you at risk?
Page 5
This property
development company
is solving SA’s housing
backlog
Page 3
Ten-bagger indicator #1 – Check for companies of the right size
When I discovered Adapt IT it had a market cap of R69 million. Five years
later, the company is worth R1.5 billion.
Right now Silverbridge is worth R58 million, only a bit less than Adapt IT
was five years ago.
If Silverbridge only sees HALF the growth Adapt IT did, it will become
a ten-bagger!
Ten-bagger indicator #2 – Fast growth
Central to Adapt IT’s share price growth between 2010 and 2016, has been its
profits shooting the lights out.
2011 saw its earnings per share at 11.46c, 2012 at 17.45c, 2013 at 22.27c, 2014
at 34.55c and 2015 profits came in at 46.54cps.
Lets compare Silverbridge to Adapt IT…
Silverbridge recorded earnings per share of 7.6c in 2013, 17c in 2014 and
24.10cps in 2015.
Considering a number of new business initiatives the company took on,
I believe this is only the start of its earnings shooting up – with much more
to come.
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Ten-bagger indicator #3 – One of the most
important financial ratios I know of…
One of the most important profitability metrics is
Return on Equity (ROE).
What I like to see is a company increasing its ROE.
In Silverbridge’s case that’s exactly what it’s done in the
past three years.
It’s ROE in 2013 was 9.58, in 2014 it was 19.41 and
by 2015 it hit 21.29. During its run up to the massive
gains of the past, Adapt IT saw ROE shoot up as high
as 27.51%. So there’s still some work that needs to be
done by Silverbridge… But it’s getting there.
Ten-bagger indicator #4 – An overarching ‘catalyst’
must be in place…
There are a number of catalysts working in on
Silverbridge right now.
The first is Software-as-a-Service (SaaS). Instead of
selling a software package to a client as a once off
companies nowadays rather rent the software to them.
They continue updating and improving the software –
and in turn they keep making money from it.
This is a new thing that was implemented by
Silverbridge a couple of years ago – and it’s partially
behind the success of `dilverbridge so far.
Growth in Africa has also been a major theme for the
company, as it was for Adapt IT…
Adapt IT started off with software that it developed for
the sugarcane industry. It first sold it to a single client
and then started rolling it out throughout South Africa,
Africa and the world – without additional development
costs.
Silverbridge is doing something similar. Silverbridge
has management software that’s used by insurance
and financial services companies. Liberty, Absa and
Nedbank are some of its clients.
But the company has started an Africa roll out as well.
It’s now ‘renting’ out this software to companies in
Ghana, Nigeria, Angola, Kenya and Malawi.
And it makes money from its clients every step of the
way. The company consults on the implementation of
software. It then implements the software and helps
clients with integration. It rents out the software on a
usage basis. And it can even host the software on an
off-site server with data back-ups for clients.
What’s more, from traditionally only focussing on the
life insurance part of the business software, it now plans
to start development for pension and savings. Then it
plans to expand into short term insurance and health
insurance.
In fact, these days there’s talk of moving to ‘robot’
financial advisers – imagine what an opportunity this
could be?
Ten-bagger indicator #5 – Make returns when you buy
I never like to overpay for an investment. Paying the
least possible amount for an investment ensures higher
possible gains and lower downside in the event things
go wrong.
In 2012 Adapt IT was on a PE of 7.35 and its share
price was at an 80% premium to its net asset value.
Today Adapt IT is on a PE of 21.64 and a premium of
239% to its net asset value!
Silverbridge currently sits on a PE of 6.21 with a
49% premium to its net asset value.
It’s still early days, but Silverbridge presents as
attractive, if not a more attractive opportunity as
Adapt IT did back between 2010 and 2013.
With current earnings and a similar PE to Adapt IT,
Silverbridge would sit on a target share price of
521cps – compared to its current share price of 169c.
If the company manages 20% earnings growth for three
years and then trades on a PE of 18 – it will have a
share price of 750c – a 343.78% gain in three years!
Considering this – and the other similarities between
Silverbridge and Adapt IT I simply can’t resist buying
into the share. Buy Silverbridge below 180c today and
you could make a 343% gain in the coming three
years – or more!
SILVERBRIDGE
Profits! – Silverbridge is on a PE of 6.21 right now and it will grow profits in the coming months.
Open Communication! – Silverbridge is successfully implementing a ‘Software-as-a-Service’ model and
hosting its software in the cloud – part of a new move that open new markets around the world to it.
Wow Factor! – This share ticks all the same boxes Adapt IT did before it became a ten-bagger – don’t miss out
on the opportunity!
Assets! – Silverbridge has a successful software system that it can now sell to more and more new customers
without additional development necessary. As long as it keeps this software up to date it will keep generating
more and more money every month!
2
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The company that’s solving South
Africa’s 3 million house backlog one
development at a time…
Within the next five years it’s estimated that another
2.5 million people will move into our three major cities,
Johannesburg, Pretoria and Cape Town.
But it’s about to kick into high gear.
In addition to these people, there will be more than
656,322 new births (net of deaths) in Gauteng alone
per year. So that’s another 3.2 million new people in
Gauteng alone over the next five years.
And in the past couple of months it’s secured another
big deal, buying land in Waterfall City with plans to
build another 15,000 homes.
As things stand the Gauteng housing shortage is already
one of epic proportions – and nationally it stands at a
shortage of 3 million homes. Obviously many of these
are low cost homes. But it also includes affordable
family houses and student housing.
Just think of recent student protests at the University
of Johannesburg – because students couldn’t get into
residences and there are no available apartments in
close vicinity….
There’s a new city shooting up close to Johannesburg in
the form of the R50 billion Waterfall City as well as the
massive Steyn City shooting up next door.
But the fact is, the majority of people won’t look for a
huge house next to a golf course in coming years. They
want one bedroom, two bedroom or three bedroom
apartments and townhouses. Properties that are
affordable to purchase, cheap to maintain and high in
demand.
More people, more money,
more demand for homes…
You might want to know whether all of these people
looking for homes can actually afford them?
And the numbers confirm they can…
Between 2011 and 2015 the number of registered tax
payers in South Africa increased from 10.34 million
to 18.18 million and around 6.6 million taxpayers that
have submitted returns in the past year!
The number of tax payers in the top two tax brackets
(R250,000 and more per year) have grown from
54.5% of taxpayers to 68.3% of taxpayers!
After listing on the JSE last year this tiny company
secured a pipeline to build 15,000 homes.
Perhaps the most important – all of these homes are in
the affordable, middle income segment. So the company
ensures that it builds homes that SELL.
This means homes that cost between R500,000 and
R1.6 million each.
After listing on the JSE in 2015 and raising cash,
Balwin (JSE:BWN) is now in a position to fast track
its development plans and make BIG money. Let me
explain…
Balwin just secured a massive tract
of land in the Waterfall City area’
If you’ve been on the N1 on the way to Johannesburg
I’m sure you’ve seen the massive R50 billion Waterfall
City development take shape.
They’ve built the largest single phase shopping mall
in South Africa.
There’s a skyscraper in the making which will be the
new offices for PWC.
And there are nearly twenty thousand houses being
planned to shape this new ‘city within a city’.
Amidst all of this, Balwin has just signed a deal to buy
232.8 hectares of development land in the Waterfall
City and Kyalami areas.
After having spent all the time since it was founded to
build 13,500 homes, this deal sets Balwin up to go into
high gear.
You see, Balwin had a project pipeline in place for
around 15,000 homes in the next 8 years, which is
already about twice as much as it’s built in the past
ten years.
What’s more, 40% of all taxpayers are in Gauteng!
With this deal it adds another 15,000 homes to its
project pipeline.
So, to take advantage of this I’ve uncovered a small
property developer.
And what I really like in the way Balwin does this is
the fact that it takes on minimal risk.
It started small, building 13,500 new homes in the past
two decades.
It’s not borrowing R1.5 billion to buy all the land for
these homes.
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It’s got a deal to pay R190 million upfront, with annual
payments thereafter.
The company will pay varying amounts, averaging
around R121 million a year until it’s paid off the full
purchase price of the land.
If Balwin does the same, it would only pay around
R360,000. It would make the same R6,000 rental
income a month – coming to a rental yield of 20%.
So it makes a lot more money than the average property
investor from its own rental portfolio.
Alternatively, if it manages to develop sooner than
anticipated and it pays off the land in a shorter time
span it will get a R350 million discount!
And thanks to the fact that Balwin is cash flush and low
on debt, it can afford to grow a rental portfolio without
becoming encumbered by debt.
As I mentioned, Balwin is the largest player in this
space of the housing market.
The company plans on having 2,000 rental units by
2020 – and this will give it a rental portfolio worth R1
billion on its own.
It does however have a number of competitors. Calgro
M3 is one for instance.
But here’s the thing: Balwin makes DOUBLE the
gross profit on home sales that Calgro does. Balwin
has less debt than Calgro does as well, with its
Debt: Equity ratio at 0.47 vs Calgro at 0.63 and lastly,
Balwin’s return on equity is 58% compared to Calgro
at 34%.
This all comes back to the fact that Balwin operates
in what I believe is the most lucrative market segment
there is – houses for the growing middle class.
Thanks to its low debt levels
Balwin has opportunity to be more
than a property developer!
Balwin’s management also has aspirations to move into
the property rental space.
And it has a massive advantage over other property
rental companies… You see, it develops and builds its
own properties. So it gets them at cost price.
So, if you bought a R600,000 property and rented it
out you’d make R6,000 a month, a rental yield of
12% a year.
I’m buying this hot stock today!
Often after a new listing, a share price tanks as
investor’s lose their initial excitement for a share.
Balwin was no different.
When it listed in 2015 it hit a high of R11. Since then
it dropped to a low of R5.
But since an announcement in May 2016 showing
increasing profits the share is getting the attention of
investors again. It’s already trading at R8.20.
That’s far from a high though.
If it just goes back to its listing high you’ll make 35%.
But as I mentioned, you can compare the company to
Calgro M3 that’s also a similar property company on
the JSE…
Here’s the thing: Calgro is on a PE ratio 15.83. Balwin
will post 130c profit for its year ended in Feb 2016.
So, at a similar PE to Calgro, Balwin’s share price is
worth R20.57.
That’s means you’ve got a potential upside of 151%.
Buy Balwin shares today, below R8.50 and you could
make well in excess of 100% within the next year!
BALWIN
Profits! – Balwin posted profits of 130c, higher than its forecasts – giving it a PE of 6.3 compared to
competitors on 15.
Open Communication! – Low debt and a smart strategy to invest in low to middle priced properties for the
growing middle class will see Balwin profit.
Wow Factor! – The cities Balwin develops property in, will see 2.5 million new people ‘urbanise’ in the next
five years, with another 3.2 million new births. A mass of people in need of houses!
Assets! – Balwin plans on building a 2 000 houses strong rental portfolio with excellent rental income in the
next three and a half years.
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Pan African Resources and South
Africa’s junk status – are you at risk?
This month, Marie Slater asked me about Pan African
Resources, a gold miner in our portfolio. She wants
to know if Pan Af will be negatively affected if South
Africa is downgraded to Junk Status around June by the
credit ratings agencies.
Great question.
What really drives
Pan African Resources
So until there’s a ratings downgrade I expect more rand
weakness and a better performing Pan Af.
At R14 to a dollar and $1,280 an ounce of gold, Pan Af
is undervalued. At the current rand/dollar exchange rate
the company is ridiculously cheap. The share is already
up nearly 20% in the past three months. And I expect a
lot more upside before I’d sell it. Hold.
Wescoal’s recovery is gathering steam!
Pan Af is a gold miner. Essentially the company is
affected by three main drivers. The gold price in Dollars,
the rand/dollar exchange rate and labour costs.
In the past three months Wescoal’s share price
has doubled. This is on the back of the company’s
completion of the Elandspruit mine.
Pan Af is one of the best managers of its labour force in
the entire mining industry. Since I can remember, I can’t
recall a single strike at Pan Af’s Barberton mine.
As I’ve said before, the Elandspruit mine is a big
deal – and it will see Wescoal’s share price soar.
When it comes to a junk downgrade there won’t be any
labour unrest – most workers won’t even know or care
about the junk status of South African government bonds.
But there will most certainly be an effect on the
rand/dollar exchange rate.
In the past couple of months, it appeared as if South
Africa would not be downgraded so the rand recovered
back to R14 to the dollar.
Last week however, there was an announcement that
mining production in South Africa dropped (specifically
iron ore and coal). This, with other negative news, made
it clear that South Africa could be headed for a recession
and a ratings downgrade could follow.
The immediate effect of this has been a sharp weakening
in the rand. Suddenly we’re back at R15.49 to a dollar.
What does this mean for Pan Af?
Well, a week or so ago it received $1,280/ounce of gold
with the rand at R14.20.
Today it gets $1,280/ounce of gold with the rand at
R15.49. That means the rand price of an ounce of gold
has increased from R18,176 to R19,827. This puts gold in
rand terms at an all-time high!
The closer we get to a ratings
downgrade the higher
Pan Af’s share price will go
So, as I mentioned, Pan Af does better the weaker the
rand gets.
The higher the risk becomes of a downgrade to junk
status, the weaker the rand will get.
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While this recovery has only helped us recoup the
losses on the share, the share is about to head into
major profit territory.
You see, on 18 May 2016 Wescoal announced it
expects earnings for its full financial year to hit
25.9-29.0 cents per share.
That’s a massive increase of 65%-85% on
last year’s performance.
More importantly though, this means that Wescoal made
at least 20cps earnings in the past six months, because
it’s first half of the year was during the ramp up of the
Elandspruit mine and it only made 5.1cps earnings.
So a full year at this production level means Wescoal
will make earnings of between 40-48cps.
At a PE of 8 that puts a target price of 384c on the
company, with its current share price at 170c. Buy
below 200c.
Grand Parade bags a wad of cash – now
for Burger King’s profits to come in…
Grand Parade has sold a portion of its shareholding
in the Grand West and Worcester Casino’s.
It’s sold 10% shareholding in these casino’s (it owned
25% before) for R675 million in cash.
Considering this transaction Grand Parade’s net asset
value has increased to 524cps. That means you buy a
share worth 524c for 340c at present, a discount of 35%.
A more realistic discount to investment companies
like this is 20% – meaning that the share price should
be at least 420c at present – giving you 23.5% instant
upside at the current share price.
5
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Grand Parade will use this cash to grow its Burger
King footprint, pay off debt and some of it will come
to shareholders in the form of dividends.
I expect the company to announce a roughly 20%
increase in revenue when it reports results for the full
year ending in March 2016.
As a shareholder you should also have received a
15cps dividend on 9 May 2016.
Together with this increase in revenue it will also see a
big improvement in its profit margins. I expect earnings
per share of around 50cps.
Grand Parade also plans on paying off R172.6 million
in debt using this cash.
With this deal out of the way I’m eagerly looking
forward to the next update from the company regarding
its Burger King franchises.
If these have become more profitable, as expected,
the share price will soar. Buy below 370c.
And it will also show that there’s some more space to
improve profit margins as it gets its distribution network
and production process optimized.
At full production and ideal profit margins I expect
Sephaku to reach around 140cps in earnings. We won’t
see that this year, but it could happen in the next year.
This is how Sephaku’s recovery starts… And that would be enough to see the share price
Sephaku’s share price has been under pressure due to
a lack of investor confidence. If South Africa goes
into a recession it must follow that the construction
industry and its suppliers must do badly.
But the thing is, the construction industry is actually
quite robust at the moment.
Projects typically get approved ahead of time. So even
though the economy is struggling now, there’s more
than enough work being done right now to keep things
ticking along nicely.
And that brings me to a little news announcement that’s
already seen Sephaku’s share price jump 10% in the
past two weeks…
South African cement sales increased by 1 million
tonnes from 12 to 13 million tonnes for the year in
2015.
Cement sales will keep increasing well into 2020…
From my analysis I found that South African cement
sales are set to continue increasing well into 2020. The
current 13 million tonnes a year can easily increase by
another 2-3 million tonnes a year by that time.
The point is, there’s more than enough appetite to take
up all the cement Sephaku has to sell!
Sephaku is the lowest cost producer of cement in South
Africa thanks to its state of the art facilities. But it also
manages to produce some of the best quality product.
TRIPLE. Hold.
A heavyweight becomes the DAWN
CEO – here’s how the company’
share price could double….
DAWN’s founder and CEO turned 60 in March and
decided to retire on 31 May 2016. Taking over from
him is Stephen Connelly.
Mr Connelly was a very successful CEO at Hudaco
Industries for 22 years and is especially strong with
turnarounds.
He’s already implemented new plans for DAWN to turn
around the company’s few loss making operations. The
company has already achieved R168 million in cost
savings this year – and this will certainly show in the
next 12 month’s financials.
As I told you when I tipped the share, the company
has a net asset value north of 840c, with a share price
around 400c.
So if it increases revenue and turns all of its business
units to a profit, this share price could easily double.
On the news of the new CEO the share price jumped
from around 370c earlier in April to 435c.
I would buy more shares in the company below 430c.
Buy below 430c.
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Red Hot Penny Shares PowA! Portf
Name
New
Buy
New
Buy
Sector Ticker
Tip Date Tip
Recent
Growth
Target
Risk level
Signal
Price (c) value (c)
Balwin Property
Real Estate
BWN
Jun-16
840
840
0%
Low
Buy
Bowler Metcalf
General Industrials
BCF
Jun-15
700
1020
51,63%
Medium
Hold
Datacentrix
Technology
DCT Oct-14
400
505
30,92%740 Low
Buy
DAWN
Construction Materials
DAW
May-16
439
405
0,00%
845
Medium
Buy
Grand Parade Investments
Specialty Finance
GPL
Feb-16
379
335
-8%
723
Medium
Buy
Merafe Resources
General Mining
MRF
Dec-13
66
95
50,17%
192
Medium
Hold
Metrofile
Support Services
MFL
Feb-15
499
468
0,20%
880
Medium
Buy
Onelogix
Industrial Transport
OLG
Aug-15
485
330
-31,96%
825
Medium
Buy
Pan African Resources
Gold Mining
PAN
Mar-15
280
305
9%
500
Low
Hold
Prescient Ltd
Financial Services
PCT
Oct-15
96
111
15,63%
172
Low
Buy
Quantum Food Holdings
Food Producers
QFH
Mar-15
337
270
-19,88%
700
Low
Buy
Rolfes Technology Holdings Specialty Chemicals
RLF
Oct-13
558
270
-51,61%
800
Medium
Buy
Safari Investments
Real Estate
SAR
Dec-15
840
701
-13%
1353
Medium
Buy
Sephaku Holdings
Building Materials
SEP
Jan-15
690
455
-34,06%
1589
Low
Hold
Silverbridge
Technology
SVB Jun-16 169 169
0,00%
High
Buy
Stellar Capital
Specialty Finance
SCP
Jan-16
215
197
-8,37%
381
Medium
Buy
Torre Industries
Industrial Suppliers
TOR
May-15
454
285
-36%
695
Medium
Buy
Value Group
Transportation Services
VLE
Apr-16
320
320
0,00%
550
Medium
Buy
Wescoal
Basic Materials
WSL
Apr-14
193
180
-6,74%
478
Medium
Buy
York Timber Holdings
Forestry and Paper
YRK
Jul-15
260
290
11,54%
703
High
Hold
1204
NOTE: Recent value taken at market close on 24 May 2016
Percentage gains include dividends received while holding shares
Please note that eventhough I do supply risk levels, ALL the shares I tip have incredible profit potential. In order to practice good money mangement
and limit risk in your portfolio I suggest you adjust the weighting of your holdings according to the risk level I publish. They are purely a guideline. For
reporting purposes the Red Hot portfolio is equally weighted.
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Publisher: Annabel Koffman. For any queries call 0861 114 365 and for editorial queries please fax us on 0861 114 716 or e-mail us at [email protected]. F
SPInvest.co.za, a division of Fleet Street Publications
(Pty) Ltd, is a research house and not a registered broker, financial advisor or financial service provider. Our editors and customer services teams also do not give personal investment advice. The information
in this newsletter is general advice only and may not be appropriate to your particular investment objectives, financial situation or particular needs, so before investing or if in any doubt about your personal
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disclaim all liability for any inaccuracies or omissions in this publication.
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Make big money from small stocks in 12 months or less!
The five point checklist to picking
potential ten-baggers
Say you invested R100 to start your own shoeshine
business… And you earn R25 in your first year. Your
ROE would be 25%.
Imagine you bought Finbond when it was at 9c back
in 2012… In 2015 it hit R5 – a 5,455% return. Or
Adapt IT, 110c in 2012 and shot up to R13 in 2016 for
a 1084% gain.
You would’ve found an elusive ten bagger…
The most attractive stocks are the ones that can grow
at a high rate.
But these shares don’t just go up randomly. There are
fixed patterns with all of them.
And to grow at an above-average rate, a business has to
have some kind of sustainable competitive advantage.
Here are the five points all of these ten-baggers had in
common, apply these to your own investing and you
could find the next ‘once in a lifetime’ opportunity…
The ones that have this advantage generate high ROEs.
That’s where a lot of ten -baggers come from.
Between 2002 and 2004 Capitec showed ROE
increasing on an annual basis from 4.03% in August
2002 to 7.9% in Feb 2003. By February 2004 it hit
11% and by August 2015 it hit 17%. Today it’s at 23%+.
The five things to look for to
find the next ten-bagger
Ten-bagger indicator #1 – Check for companies
of the right size
What are the chances of Woolies growing sales ten-fold
and its value becoming close to a trillion rand over the
next ten years? I’d say fairly slim – South Africa just
isn’t big enough for the company to grow that much
that quickly within our borders.
Finbond on the other hand was worth R42 million
with annual revenue of R47.4 million in February
2012 when its share price was only 11c. A R15,000
investment in the company back then would be worth
R709 090.91 by April 2015.
Companies don’t just increase revenue and market caps
ten-fold by chance.
• Management with a clear growth plan – think of
Adapt IT’s 500% in 5 year growth plan…
• A big demographic change in the company’s market –
Emergence of the black middle class in South Africa
increased number of consumers that shopped from
retail stores.
Ten-bagger indicator #2 – Fast turnover growth
To find a ten bagger you want to look for a company
that’s already had strong turnover growth in the past two
to three years.
You also want the company to be in a growing sector
as well.
Think of Shoprite in the early 2000’s. South Africa
saw massive growth in the form of the black middle
class and retail stores started opening all over. Between
2003 and 2009, Shoprite grew from a R24 billion a year
company to a R60 billion a year company. Its profits
nearly tripled and its share price shot up eight fold.
Return on Equity (ROE) is a financial ratio that
tells you how effectively a company uses the money
investors have given to it.
Ten-bagger indicator #4 – An overarching ‘catalyst’
must be in place…
There has to be a large catalyst in place:
So, look out for companies with a market cap below
R5 billion for the best chance at finding a ten-bagger.
Ten-bagger indicator #3 – One of the most
important financial ratios I know of…
Had you bought by February 2004, seeing a consistent
increase in ROE you would’ve paid R6 a share – and
these shares traded at R600 this year – a hundred-bagger!
• A discovery of a new technology or product – think
of how the Apple iPod and iPhone changed the face
of the company forever.
Ten-bagger indicator #5 – Make returns when you buy
Shoprite was on a PE of 11.5 in June 2002, Capitec was
on a PE of 8.58 in August 2004 and Adapt IT was on a
PE of 6.11 in June 2011 at 70c and since then its shot
up to more than R14.
Many investors believe you have to buy so-called
‘growth’ shares to make these big returns. That is shares
on a high PE.
But this is clear proof that three of the best returning
shares in the past decade were dirt cheap and
‘unwanted’ by investors just before they shot the
lights out.
Buying at these low PE’s when the company is set for
growth is the best way to make triple digit gains.
*RHP030*
RHP030