Value on the JSE? We find the Cheapest Shares
🎙️ Worldwide Markets Ep. 651 — “Value on the JSE? We Find the Cheapest Shares” (8 October 2025) 📅 Recorded Tuesday afternoon | Powered by Standard Bank & SHYFT 💡 Episode Overview This week Simon Brown digs into value on the JSE — where the cheapest shares might be hiding 👀. He also unpacks: The Purple Group* pullback 🟣 ETF returns so far in 2025 📈 (spoiler: it’s been a wild year!) Upcoming Standard Bank Power Hour: Investing Like Warren Buffett 🧠 🟣 Purple Group: Pullback or Panic? After a huge rally to R2.74, Purple Group has pulled back — but no need to panic. Likely to find support around R2.10, with upside targets around R3.50 💪. Expecting strong trading updates by late October or early November. With markets, gold, crypto, and offshore assets all flying, Purple should benefit as trading volumes rise. 📊 2025 ETF Returns — A Booming Year Simon’s recent ETF analysis shows a banner year for SA ETFs (excluding dividends): 🏆 Top Performers: Satrix RESI* +118% 🪨 Satrix Shariah +69% 🌙 (thanks to heavy gold exposure) 10X Top 20, Rafi 40*, Gold ETFs, SWIX, and EasyETFs Global Equity (Active) all strong 📈 📉 Laggards: Signia Health Innovation −9.2% 🧬 India ETF −8.7% 🇮🇳 Global Bonds & Healthcare ETFs slightly negative 🪙 Overall takeaway: 2025 is a golden year — literally and figuratively. 💸 Value Hunt: The Cheapest Shares on the JSE Simon’s criteria for spotting value gems 💎: PE ratio: 0–10 (profitable companies only) Dividend yield: >0.01% (sign of free cash flow) Price-to-book: 🔍 Highlights from the Screen Property & Small Caps: 🏢 Ascension, Safari, Emira, Octodec — deep discounts to NAV, juicy yields (~8%). 🚍 Putprop — Western Cape bus operator, tiny but intriguing (PE 5.7, yield 3.5%). 🏠 Calgro M3* — low-cost housing builder, due for results soon; Baldwin also looking attractive. Media & Industrials: 📺 E-Media — PE 4.8, dividend ~12%, cheap but illiquid. 🪵 Sappi & Mondi — paper industry under pressure. ⚙️ Invicta — PE 🪓 Master Drilling — exposure to gold & copper, global operations, decent IP. 📦 Mpact — tied up in Caxton’s bid & Competition Commission delays. Consumer & Financials: 🛋️ Lewis Group — “a bank disguised as a furniture store,” 10%+ yield, strong results. 🏦 Investec, ABSA, Nedbank — cheap banks with high yields and solid balance sheets. 🧓 Old Mutual — ~9% yield, launching a bank soon; well positioned in bull markets. 🚗 Motus & CMH* — benefiting from decade-high vehicle sales. 📦 Stor-age*, Spear, Growthpoint — steady property plays; prefer those with discounts to NAV. Other Notables: 🐟 Sea Harvest & Oceana — solid businesses, but “fish stocks make for tough investments.” 🪙 Sabvest — style value play, small discount to NAV. 💼 HCI — resolved union cash flow issues, trades below asset value. 🎙️ African Media Entertainment — great yield (10%), but beware of liquidity traps. ⚠️ Simon’s Key Takeaways ✅ There is value on the JSE, but many bargains are illiquid — trade carefully. ✅ Liquidity traps can hurt even when valuations look great. ✅ Dividend yields + solid cash flow are strong signals of resilience. ✅ Always DYOR — “Not financial advice.” 🧭 Final Thoughts 2025 continues to be a strong year for gold, ETFs, and SA banks, with pockets of deep value emerging across small caps and property. 💬 “Markets that are going higher make us feel richer — but if we’re positioned right, they actually make us richer.” — Simon Brown 🔗 Powered by Standard Bank & SHYFT 🌍 SHYFT, the global money app from Standard Bank — travel, shop, pay, and invest globally with the best Forex rates anytime, anywhere. 👋 Closing Note: Nine more episodes to go this year! Simon signs off: “Look after yourself — and if you can, look after somebody else as well.” ❤️ Simon Brown * I hold ungeared positions. All charts by KoyFin | Get 10% off your order
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