Barloworld says to spin off PPC seen by end-June

(Reuters) - South African diversified industrial and logistics group Barloworld expects to conclude its planned spin off of cement maker PPC by the end of June this year, it said on Tuesday.

Barloworld said on December 18 it intended to offload its majority stake in PPC, and has returned 1 billion rand in a special dividend to shareholders as part of the deal. The unbundling deal is subject to regulatory approvals.


Read more at Reuters Africa

JSE Alsi ends down the second day in a row

The JSE All Share ended today down 0.70% to 24980.440. Resources moved down 2.22%, the platinum mining index fell 1.01% and the gold mining index lowered by 0.24%.
Financials lost 0.27%, with the banks index fell only 0.05%. Industrials ended up 0.57% . The dollar was trading at R7.21 per dollar and Gold improved slightly from $626.60/oz to $626.90/oz.

Other Stats

Rand-Sterling 14.1445 +0.07%
Rand-Dollar 7.1712 -0.40%
Rand-Euro 9.2857 -0.52%
Gold $629.10 +0.67%
Platinum $1139.50 +0.35%
Brent Oil $51.28 -0.66%

Current Trades

Sold PPC today and made 12%. BAW is still in a strong upward trend and I am currently up 20%. I have moved my stop loss higher as to preserve more profits but I expect it to be hit tomorrow with it only being 3.9% away from being hit.

JSE CODE:BAW 17932 +3.02%
SECTOR:Diversified Industrials









Watch List

1)JSE CODE:NHM 5190 0.58%
SECTOR: Platinum & Precious Metals
Comment: May be to late but will keep an eye out for dividend

2)JSE CODE:HVL 6977 -3.1%
SECTOR: Steel
Comment: Still feeling good about it waiting for upturn.

3)JSE CODE:SOL 22750 -0.46%
SECTOR: Integrated Oil & Gas
Comment: Earning are hedge so falling oil price not a factor but the market is pricing it in.

Tomorrow

I expect the downward trend to continue in resources while local shares could offer buying opportunities. A warrant trade that is short of resources looking better while oil is falling.

JSE ends down 0.16% due to Resource Heavyweights

The all share indeed ended 0.16% weaker at 25,155.450. Resources retreated 1.21% but the platinum mining index perked up 1.18%. Industrials and financials firmed 0.43% and 0.69% respectively.




Other Stats
Rand-Sterling 14.1810 +0.33%
Rand-Dollar 7.2108 +0.17%
Rand-Euro 9.3500 +0.39%
Gold 624.12 -0.38%
Platinum 1143.00 -0.09%
Brent Oil 52.18 -2.38%

Current Trades
I am still busy with both the PPC and BAW trades. Things are going well with only 2% to go for PPC before I reach my target while BAW exceeded my target already and is about 15% up. I placed a stop loss on the BAW of around 7% so a nice profit is in the bag.

JSE CODE:PPC 39065 +0.22%
SECTOR:Building Materials & Fixtures

JSE CODE:BAW 17300 +1.17%
SECTOR:Diversified Industrials

Watch List
I have 3 shares on my watch list at the moment and depending on PPC and on how they are doing we might just buy.
1) JSE CODE:NHM SECTOR:Platinum & Precious Metals
Pros
Platinum's average price for 2006 was $1142/oz
Earning up around 100%

Cons
A high PE of 17 may mean the good news is priced in
Price has moved 5% already this week

2) JSE CODE:HVL SECTOR:Steel
Pros
Steel price has moved up the past month
Local demand still high
Chinese demand
Historic PE of 6.6

Cons
Price has moved down
thinly traded so big positions moves market

3) JSE CODE:SOL SECTOR:Integrated Oil & Gas
Pros
Has an hedge in place at $63 so with oil trading $52 well in the money
Technology
Big Dividends

Cons
Windfall tax issue
PE of 10 (so its fairly priced)

Well let see what happen tomorrow. I however expect the market to continue moving down on US news. Enjoy the trading :-)

JSE higher on resources

JSE higher on resources
The all share index closed 0.62% stronger. The all share industrial index inched 0.11% higher.

There are 2 trades I am busy with. PPC and BAW. Mostly because of the big dividends and support for BAW with the unbundled of PPC out of BAW. However I think a better strategy of shorting PPC while going long on BAW would have been better.

PPC ended the day up 0.01% while BAW ended down by 1.62% (going ex dividend)

PPC

BAW

Had some problems with the moving of my PPC and BAW share instalments from my normal trading portfolio to my Warrant portfolio. This is to reduce trading cost. I also need to make sure I get the full dividend as the only payed me the special of PPC and not the normal dividend as well.

Holiday Blues

Hi All,

Been on holiday in Cape Town. Tasting wine and enjoying a well earned brake. Will be back next week at my normal work. Damm I not looking forward to it at all. However I the JSE is going to keep up trading down its going to be a looooong year. Well after the 35% of last year for the overall index one could have expected for it to trade lower during the new year when traders return to their desks. Last week was a week where a well planned put warrant in PPC would have made you a pretty penny.