Simon Shares

• Greenest start to a year since the 1960's, Top40 is 6.9% up year-to-date.
• MultiChoice (JSE code: MCG) has unbundled out of Naspers (JSE code: NPN) with MultiChoice closing at R106 and Naspers off R125 on the back of Tencent weakness over night in Hong Kong. So no value unlock and with fair values for MutliChoice being between 8500c - R150. Most people I speak to say at current prices if you received MultiChoice shares you should hold them at this price. Also MultiChoice will remain in the Top40 index with Truworths (JSE code: TRU) exits Top40 Friday morning. Those saying MultiChoice is dead, well maybe in time. But nothing is that linear and be careful of taking a dislike for DStv pricing out on the share - they're different beasts. They could get bought by a telco (we're seeing that in the US), they could get the subscriber growth they're targeting in the rest of Africa, Showmax could take off of they could muddle along or they could go broke. Lots of options.
  • Below are the index changes effective at open 1 March 2019.
    • Top40; MCG stays TRU exits
    • Indi25; MCG stays MTH exits
    • Findi30; MCG stays NTC exits
• Shoprite* (JSE code: SHP) results were not as bad as I expected with operating margin down 1% at 4.4% but much better than I expected and still about twice that of Pick n Pay (JSE code: PIK). Lots went wrong, probably half managements fault (strikes and IT upgrade issues) and half just what happens some times (Angolan hyper inflation and zero food inflation). At current prices the stock is attractive. Interesting is that Wiesse wants to sell his voting control shares that have no economic rights but some 32.3% votes. They've been valued at some R4billion when Star listed but they're hard to value and I'll wait and see what the plan is here.
• Tomorrow, Friday 1 March, the annual tax-free limit resets. Find the JSE Power Hour video we did here.
• Great comparison between the locally listed global property ETFs from Sygnia and Core Shares.
• Up coming events;
  • 7 March ~ JSE Power Hour: Finding value the Benjamin Graham way 

* I hold ungeared positions.

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